#ArbitrageTradingStrategy

Here is a brief overview of the Arbitrage Trading Strategy:

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📌 What is Arbitrage?

Arbitrage is a trading strategy aimed at making a profit from the price differences of the same asset in different markets or at different times.

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💡 Types of Arbitrage:

1. Simple Arbitrage (Spatial Arbitrage):

Buying an asset from one market and selling it in another at a higher price (e.g., buying Bitcoin from Binance and selling it on Coinbase).

2. Triangular Arbitrage:

Exploiting conversion differences between three currencies within the same market (example: BTC → ETH → USDT → BTC).

3. Temporal Arbitrage:

Exploiting the price difference between two different times for the same asset (e.g., in futures and spot contracts).

4. Statistical Arbitrage:

Relies on mathematical models and statistical techniques to predict temporary price relationships.

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⚙️ Requirements:

• High execution speed (using bots is preferred).

• Clear price differences that cover fees.

• Sufficient capital.

• Continuous market monitoring.

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✅ Advantages:

• Almost guaranteed profits if executed quickly.

• Relatively low risks compared to traditional trading.

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❌ Disadvantages:

• Difficulty in executing manually.

• Opportunities decrease as markets evolve and competition increases.

• Fees and delays can eat into profits.