#ArbitrageTradingStrategy

The Arbitrage Trading The Invisible Profit-making Machine

Arbitrage trading thrives on minute discrepancy in prices of different markets to claim risk-free profits. It is like there is free money-provided you can be quick enough.

The Way It Works

Purchase at a low price in a certain market → Sell at a high price in another market → Make a profit through the difference. It sounds easy, yet it is all about implementing it.

Best Arbitrage Trading

Exchange Arbitrage - Prices on two platforms are different on crypto/FX/stocks

Statistical Arbitrage: Algorithmic Fields in correlated assets

Triangular Arbitrage-Forex: Currency mismatches Triangular arbitrage is a type of arbitrage involving currency mismatches in a forex market that occurs when the exchange rate on one side of a trade lies within the bounds of one currency pair and the corresponding rate on the other side exceeds the bounds of the other currency pair.

📍 Merger Arbitrage -realising the difference in prices of acquisitions

Why It is Effective (And Difficult)

Minimal risk in doing it right

Market efficiency is forced through balancing prices

Speed is required -HFT firms take control

Thin profits-Margins can strangle profits

Thoughts? As markets become more intelligent are the days of classic arbitrage ending, or simply changing?