#ArbitrageTradingStrategy

Arbitrage exploits price differences of the same asset across markets. Key methods:

1. **Spatial Arbitrage**: Buy low on one exchange, sell high on another (e.g., crypto on Binance vs. Coinbase).

2. **Triangular Arbitrage**: Profit from currency mispricing in forex (e.g., USD → EUR → GBP → USD).

3. **Statistical Arbitrage**: Use algorithms to trade correlated assets (e.g., pairs trading).

4. **Merger Arbitrage**: Buy target company stock pre-merger, betting on deal completion.

**Execution**: Requires ultra-fast systems to capitalize on fleeting opportunities.

**Risk**: Low (theoretical "risk-free" profit), but execution delays or fees can erase gains.

**Challenges**: High competition, regulatory barriers, and slim margins.

Best for institutional traders with low-latency tech. Retail traders face hurdles but can explore crypto or ETF arbitrage.

*Speed and precision are key!* ⚡