#ArbitrageTradingStrategy Arbitrage trading is a strategy that exploits price differences of the same asset across different markets or exchanges to earn a risk-free profit. For example, if Bitcoin is priced lower on Exchange A and higher on Exchange B, a trader buys from A and sells on B, pocketing the difference. Types of arbitrage include spatial, triangular (between currency pairs), and statistical arbitrage. This strategy requires fast execution, high liquidity, and low transaction fees. While considered low-risk, arbitrage opportunities are short-lived and often exploited by bots. Traders must act quickly and manage potential risks like transfer delays, slippage, or sudden price changes.
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