#ArbitrageTradingStrategy Arbitrage Strategy: Earning from Price Differences

Arbitrage Trading is a method where a trader profits by utilizing the price difference of a single asset across different exchanges or markets.

How it works:

We buy an asset on the exchange where it is cheaper.

At the same time, we sell it on the exchange where the price is higher.

We secure profit from the difference with minimal market risk.

Types of arbitrage:

Inter-exchange – price difference on two exchanges.

Triangular – using exchange rate differences between several pairs on one exchange.

Cross-market – between the spot and futures markets.

Advantages:

Almost risk-free strategy (if acted quickly).

Profit is not dependent on market trends.

Disadvantages:

Requires high speed of trade execution.

Fees and transfer delays can "eat up" profit.