#ArbitrageTradingStrategy

The label #ArbitrageTradingStrategy focuses on the arbitrage strategy, which is a trading method that exploits price differences for the same asset in different markets to achieve nearly risk-free profits.

🔁 The basic idea is to buy the asset at a low price in one market and sell it at a higher price in another market at the same moment, benefiting from market inefficiencies or information delays between platforms.

💡 Some of the most famous types of arbitrage:

- Pure Arbitrage: Buying and selling the asset simultaneously between two different platforms.

- Triangular Arbitrage: Converting currencies between three pairs to profit from exchange rate discrepancies.

- Spot-Futures Arbitrage: Exploiting the difference between the asset's price in the spot market and its price in futures contracts.

⚠️ Although considered low risk, arbitrage requires high execution speed, large capital, and a precise understanding of costs and fees, as any delay or mistake could forfeit the profit opportunity.

This strategy is widely used by financial institutions and hedge funds, but it is also available to individual traders who possess the appropriate tools.