#WORD_OF_THE_DAY_BINANCE topic this week is about #Trading_Bots , here is some information ℹ️ about all types of them:
Grid Trading – Buys low and sells high within a set price range, ideal for sideways markets with frequent fluctuations.
Dollar-Cost Averaging (DCA) – Invests at regular intervals, reducing the impact of volatility by averaging out the purchase price over time.
Arbitrage – Exploits price differences between exchanges or markets, buying low in one place and selling high in another.
Momentum Trading – Identifies strong upward or downward trends and enters trades accordingly, riding the momentum until it fades.
Market Making – Places simultaneous buy and sell orders to profit from small price spreads, commonly used by high-frequency traders.
Rebalancing – Automatically adjusts a portfolio to maintain a target allocation across different assets, useful for long-term investors.
Use them wisely!! 🤓