#ArbitrageTradingStrategy

**Arbitrage Trading Strategy**

Arbitrage exploits price differences of the same asset across markets to lock in risk-free profits. Common types include:

- **Spatial Arbitrage** (buying low on one exchange, selling high on another).

- **Statistical Arbitrage** (using algorithms to identify mispriced securities).

- **Triangular Arbitrage** (exploiting currency discrepancies in forex).

**Key Requirements:** Fast execution, low latency, and minimal transaction costs.

**Result:** Successful arbitrage strategies yield small but consistent profits, relying on market inefficiencies. However, opportunities are fleeting due to high-frequency trading and competition.

*(Exact result: A well-executed arbitrage strategy can generate 0.5%-2% daily returns with minimal risk.)*