Arbitrage trading strategies involve taking advantage of price differences for the same asset across different markets or exchanges. Traders buy low in one market and sell high in another, profiting from the temporary imbalance. Common types include spatial arbitrage, where assets are traded across different exchanges; and statistical arbitrage, which uses algorithms to identify pricing inefficiencies. Another popular form is triangular arbitrage in the forex market, where discrepancies between currency pairs are exploited. These strategies require fast execution and low transaction fees, making them more suitable for institutional or high-frequency traders. While generally low-risk, arbitrage opportunities are often short-lived due to increasing market efficiency and competition. Successful arbitrage trading depends heavily on speed, accuracy, and access to reliable real-time data.

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