#ArbitrageTradingStrategy Market Inefficiencies: Arbitrage opportunities arise from temporary market inefficiencies, such as differences in supply and demand, liquidity variations, or delays in price updates across platforms.

Speed is Crucial: These price discrepancies are usually very small and fleeting, often lasting only seconds or milliseconds. Successful arbitrage requires extremely fast execution, often facilitated by automated trading software (bots).

Low Risk (in theory): When executed perfectly, pure arbitrage is considered "risk-free" because the buy and sell orders are placed almost simultaneously, locking in the profit. However, in practice, there are always some risks involved.

Small Margins, High Volume: The profit per trade is typically very small. To make substantial profits, traders need to execute a large volume of arbitrage trades.