#ArbitrageTradingStrategy

What Is Arbitrage Trading?

Arbitrage trading is a strategy that exploits price differences for the same or equivalent asset across different markets or platforms. Traders buy in the cheaper market and sell in the more expensive market nearly simultaneously, locking in a risk-limited profit

Key conditions for successful arbitrage:

Asset must trade in multiple markets with price imbalance.

Buy and sell must occur at the same time to avoid exposure.

Profits per trade are typically very small, requiring volume and speed, often via automated systems

Corporate Finance Institute