#ArbitrageTradingStrategy

Arbitrage trading strategy involves exploiting price differences of the same asset across different markets or exchanges to generate risk-free profit. In crypto, this often means buying a coin at a lower price on one exchange and simultaneously selling it at a higher price on another. Common types include spatial arbitrage (between exchanges), triangular arbitrage (within a single exchange using price inefficiencies across trading pairs), and statistical arbitrage (using algorithms to detect patterns). Speed, automation, and low transaction costs are critical for success. While profits per trade are typically small, high volume and precision can yield consistent returns. However, latency, fees, and slippage can reduce arbitrage opportunities significantly.