#ArbitrageTradingStrategy Arbitrage trading strategies are approaches to profit from price differences of the same asset in different markets.
The principle is simple: buy the asset in the market at a lower price and simultaneously sell it in another market where the price is higher. The price difference, after deducting transaction costs, becomes profit for the trader (arbitrageur).
The key to successful arbitrage is speed. These opportunities arise from temporary market inefficiencies, so the buy and sell execution must be done very quickly before prices realign. Because transactions are carried out simultaneously, the risk is considered lower compared to other strategies.
There are various types of arbitrage, ranging from simple ones between two exchanges, triangular arbitrage in currency or crypto markets, to merger arbitrage. However, risks still exist, such as execution failures, slippage (price shifts during transactions), and costs that can erode profits. In modern markets, many arbitrage strategies are executed by bots or trading algorithms to capture opportunities in milliseconds.