#ArbitrageTradingStrategy #ArbitrageTradingStrategy 💹⚡
The Arbitrage Trading Strategy consists of taking advantage of price differences of the same asset in different markets or brokers to make a profit without directional risk.
🔑 How it works:
1. Buy the asset where it is cheaper.
2. Sell simultaneously where it is more expensive.
3. Secure profit with the price difference, deducting fees and slippage.
💡 Main types of Arbitrage:
Spatial Arbitrage: Between different exchanges (e.g., buy BTC on Binance and sell on Coinbase).
Temporal Arbitrage: Exploit price differences over time in the same market.
Triangular Arbitrage: Involves three currency pairs to profit from discrepancies in exchange rates.
It is a common strategy in Cryptocurrencies, Forex, and Traditional Markets, but it requires speed, automated tools, and attention to transaction fees.
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