Arbitrage Trading Strategy
1. Identify Price Gaps: Spot price differences of the same asset across exchanges.
2. Buy Low, Sell High: Purchase the asset from the cheaper exchange and sell on the costlier one.
3. Use Fast Execution: Speed is key—delay can erase profits.
4. Account for Fees: Ensure transaction, transfer, and withdrawal fees don’t outweigh profits.
5. Use Arbitrage Bots: Automate trades for real-time advantage.
6. Monitor Volumes: Low liquidity can impact execution.
7. Cross-Border Arbitrage: Use regional price variations.
8. Triangular Arbitrage: Exploit rate mismatches in currency pairs.
9. Stay Compliant: Understand local regulations.
10. Mitigate Risks: Beware of slippage and delays.