#ArbitrageTradingStrategy Arbitrage trading is a strategy where traders make profits by buying an asset at a lower price in one market and selling it at a higher price in another. This price difference between markets creates a risk-free opportunity for quick gains. Arbitrage is common in crypto and forex markets, where prices can vary slightly between exchanges.
For example, if Bitcoin is priced at \$30,000 on Exchange A and \$30,200 on Exchange B, a trader can buy from A and sell on B to earn \$200 per Bitcoin, minus any fees. There are different types of arbitrage, such as spatial arbitrage (between exchanges), triangular arbitrage (using three currencies), and statistical arbitrage (using models and algorithms).
This strategy usually involves high speed and automation since price gaps close quickly. While profits per trade are small, doing many trades can add up. Arbitrage helps keep prices balanced across markets and is considered low-risk but requires precision.