#ArbitrageTradingStrategy
#ArbitrageTradingStrategy involves exploiting price differences of the same asset across different markets or exchanges to earn risk-free profit. Traders buy low on one platform and sell high on another, profiting from the price gap. This strategy is common in cryptocurrency markets due to their decentralized and fragmented nature. There are various types of arbitrage, including spatial (between exchanges), triangular (between currency pairs), and statistical (based on historical pricing patterns). While it appears low-risk, arbitrage requires fast execution, low fees, and significant capital to be effective. Delays, fees, and slippage can erode profits. Automation and bots are often used for efficient execution.