#ArbitrageTradingStrategy 💹
Arbitrage trading strategy involves exploiting price differences of the same asset across different markets to earn risk-free profit. In crypto, this can mean buying Bitcoin at a lower price on one exchange and simultaneously selling it at a higher price on another. It requires speed, precision, and access to multiple platforms. Traders often use bots to automate transactions and minimize slippage. Common types include spatial arbitrage, triangular arbitrage, and statistical arbitrage. While the profit margins per trade may be small, high volumes and frequency can generate substantial returns. It’s a low-risk, high-efficiency approach ideal for volatile and fragmented markets.