#ArbitrageTradingStrategy
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Neutral trading (Arbitrage) means buying an asset in one market and immediately selling it in another market at a higher price to achieve a small profit at a low percentage ([Binance][1]). However, despite the apparent low risks, there are common mistakes:
1. **Neglecting costs** – Transaction fees and taxes can wipe out profit margins.
2. **Slow execution** – The price difference may disappear before the transaction is completed.
3. **Lack of diversification** – Relying on a single opportunity exposes you to market volatility risks ([FasterCapital][2]).
4. **Poor risk management** – Shortcomings in trade size or ignoring stop-loss increases potential losses.
5. **Over-reliance on automation** – Technology failures or delays can cost you valuable opportunities.
✅ **Corrective tips**: Calculate all costs, execute quickly, diversify risks, add stop-loss, and do not solely rely on automated systems.