#ArbitrageTradingStrategy #ArbitrageTradingStrategy #ArbitrageTradingStrategy What is Arbitrage Trading Strategy?
Arbitrage trading is an investment technique that exploits price differences for the same financial asset in two or more markets to achieve almost risk-free profit.
How does it work?
If the price of a stock or cryptocurrency, for example, in Market A is $100, and in Market B it is $102, the trader can buy in Market A and sell in Market B immediately, benefiting from the difference ($2) as profit.
---
Common Types of Arbitrage:
1. Inter-Exchange Arbitrage:
Exploiting price differences for the same asset across different exchanges.
2. Triangular Arbitrage:
Using price differences between three cryptocurrencies on the same exchange.
3. Statistical Arbitrage:
Based on models