#ArbitrageTradingStrategy Arbitrage Strategy in Trading

Arbitrage is a trading strategy that seeks to profit from small price differences of the same asset in different markets or platforms. The trader identifies a discrepancy, buys the asset where it is cheaper, and immediately sells it where it is more expensive. All of this must happen almost simultaneously to minimize volatility risks.

There are several types, such as statistical arbitrage, which uses mathematical models to predict imbalances, and triangular arbitrage, involving three different currencies. Although it seems simple, it requires speed and advanced technology for execution, as opportunities are usually fleeting and highly contested by high-frequency bots.