#ArbitrageTradingStrategy Arbitrage trading is a sophisticated investment strategy that aims to profit from temporary price discrepancies of the same or similar assets across different markets or exchanges. The core idea is to simultaneously buy the asset in the market where it's priced lower and sell it in the market where it's priced higher, thereby locking in a risk-free profit (minus transaction costs).

How Arbitrage Trading Works:

Arbitrage opportunities arise due to market inefficiencies, such as:

Information Asymmetry: Information may not be disseminated instantly across all markets, leading to temporary price differences.

Supply and Demand Imbalances: Local supply and demand dynamics can cause price variations.

Latency: Delays in order execution or data transmission can create brief windows for arbitrage.

Transaction Costs: Differences in transaction costs across platforms can sometimes open arbitrage possibilities.