#ArbitrageTradingStrategy An arbitrage trading strategy involves exploiting price differences of the same asset across different markets to earn a risk-free profit. Traders simultaneously buy low in one market and sell high in another, capitalizing on inefficiencies before prices converge. Common types include spatial arbitrage, statistical arbitrage, and triangular arbitrage in forex. Speed and technology are crucial, as opportunities often exist for mere seconds. High-frequency trading firms and institutional investors frequently use automated systems to execute these trades. Although the profits per trade are small, consistent execution with large volumes can yield significant returns over time with minimal market exposure or directional risk.