#ArbitrageTradingStrategy

Arbitrage trading capitalizes on temporary price discrepancies of an asset across different markets or forms. For instance, if a stock trades at $10.00 on Exchange A and $10.05 on Exchange B, an arbitrageur simultaneously buys on Exchange A and sells on Exchange B, pocketing the $0.05 difference per share.

This strategy is considered low-risk because it doesn't rely on market direction. However, opportunities are fleeting due to high-frequency trading and efficient markets. Successful arbitrage requires sophisticated technology for rapid execution and access to multiple trading platforms. Profits per trade are typically small, so high volume is crucial.