#ArbitrageTradingStratergy

Arbitrage trading is a strategy where traders profit from price differences of the same asset across different markets or exchanges. In crypto, this could mean buying Bitcoin at a lower price on one exchange and selling it at a higher price on another. The price gap may exist due to market inefficiencies, latency, or regional demand. There are several types of arbitrage, such as spatial arbitrage (between exchanges), triangular arbitrage (within one exchange using three different trading pairs), and statistical arbitrage (based on quantitative models). While arbitrage is often seen as low-risk, it requires fast execution, low fees, and significant capital. Automated bots are commonly used to detect and exploit these opportunities quickly before the price gap closes.