#ArbitrageTradingStrategy

An arbitrage trading strategy exploits price discrepancies of the same asset across different markets or platforms. Traders buy low in one market and sell high in another, locking in risk-free or low-risk profits. This strategy requires speed, precision, and access to real-time data, as price gaps typically exist for brief moments. Common types include spatial arbitrage, statistical arbitrage, and triangular arbitrage in forex. High-frequency trading firms often use sophisticated algorithms to execute these trades instantly. While the concept is straightforward, execution can be complex due to transaction costs, latency issues, and capital requirements. Still, when done correctly, arbitrage can provide consistent, low-risk returns in both traditional and crypto markets.