Arbitrage trading strategy involves exploiting price differences of the same asset across different markets. Traders buy low in one market and simultaneously sell high in another, locking in a risk-free profit. Common in crypto, forex, and stock trading, arbitrage demands speed, precision, and technology. Types include spatial arbitrage (across exchanges), statistical arbitrage (using algorithms), and triangular arbitrage (in forex). While it offers low-risk returns, arbitrage opportunities are short-lived and require high liquidity and minimal transaction costs. In today's fast-paced digital markets, successful arbitrage often relies on automated trading bots. Despite being complex, it remains a powerful tool for savvy traders seeking consistent, small profits from market inefficiencies.
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