#ArbitrageTradingStrategy

Arbitrage trading strategy involves exploiting price differences of the same asset across different markets or exchanges to secure risk-free or low-risk profits. For example, if Bitcoin is priced at $111,800 on Binance and $112,050 on Coinbase, a trader can buy on Binance and simultaneously sell on Coinbase, capturing the price difference minus fees. Types of arbitrage include spatial arbitrage (across exchanges), triangular arbitrage (using price inefficiencies between trading pairs), and statistical arbitrage (quantitative models to predict mean reversion). Successful arbitrage requires speed, low fees, and liquidity monitoring, and it helps improve market efficiency while providing consistent small gains.