Arbitrage Trading Strategy: Profit from Price Gaps
Arbitrage trading is all about taking advantage of price differences across markets. It sounds simple—but it requires speed, precision, and low risk tolerance.
🔹 What It Is
Buy an asset on one exchange where it’s cheaper, sell on another where it’s higher—lock in the spread.
🔹 Types of Arbitrage
Spatial Arbitrage: Between different exchanges
Triangular Arbitrage: Within one exchange using three pairs
Statistical Arbitrage: Algorithm-based, short-term mispricings
🔹 Key Success Factors
Fast execution & low fees
Reliable data feeds
Automated tools or bots
Small margins, high frequency. Precision matters more than prediction.
