#ArbitrageTradingStrategy Arbitrage trading capitalizes on temporary price discrepancies of the same asset across different markets. Traders (arbitrageurs) simultaneously buy the asset in the market where it's priced lower and sell it in a market where it's priced higher, locking in a risk-free profit. These opportunities arise due to market inefficiencies, such as slight delays in price updates, differences in supply and demand, or varying exchange rates. While individual profits are often small, high trading volumes can lead to substantial gains. The rapid execution, often facilitated by automated algorithms, is crucial as these price differences typically vanish quickly as other traders exploit them.