#ArbitrageTradingStrategy
Arbitrage trading strategy exploits price differences of the same asset across different markets or exchanges. Traders buy low in one market and sell high in another, profiting from the imbalance. This strategy requires speed, precision, and advanced tools or bots to identify and execute opportunities quickly. Common types include spatial arbitrage, triangular arbitrage, and statistical arbitrage. While generally low-risk, arbitrage opportunities are often short-lived and can be impacted by transaction fees, network delays, and liquidity issues. Successful arbitrage trading demands strong technical infrastructure, constant market monitoring, and a deep understanding of how different exchanges and pricing systems operate.
