#ArbitrageTradingStrategy #ArbitrageTradingStrategy: Profiting from Price Gaps

The #ArbitrageTradingStrategy involves buying an asset on one market and simultaneously selling it on another to profit from price differences. It’s a low-risk trading method commonly used in cryptocurrency and forex markets, where price discrepancies occur across exchanges.

For example, if Bitcoin is $30,000 on Exchange A and $30,200 on Exchange B, a trader can buy on A and sell on B—locking in a $200 profit per BTC. Types of arbitrage include spatial arbitrage (between exchanges), triangular arbitrage (using three currencies), and statistical arbitrage (based on models and algorithms).

While usually low-risk, arbitrage requires fast execution, large capital, and attention to fees, slippage, and transfer times.