#ArbitrageTradingStrategy

#ArbitrageTradingStrategy

The Arbitrage Strategy relies on exploiting price differences for the same digital asset across different platforms or between multiple trading pairs. The idea is simply: buy cheap from one platform and sell high on another, all in a very short time before the differences disappear.

🔁 Common types of arbitrage:

Spatial Arbitrage (between platforms):

Like buying BTC from platform A at a price of 27,000 and selling it on platform B at a price of 27,200. The difference is 200 dollars, which is the potential profit (before deducting fees).

Triangular Arbitrage (within a single platform):

Occurs by exchanging 3 currencies such as: BTC → ETH → USDT → BTC. If the cycle ends with a balance greater than the beginning, the difference is the profit.

Decentralized Arbitrage (between centralized and decentralized platforms):

Exploiting the price difference between DEX and CEX for the same currency in real-time.

✅ Conditions for the success of the strategy:

Very high execution speed.

Low trading and withdrawal fees.

Sufficient capital to cover the differences and fees.

Real-time price monitoring.

Using bots or automated tools to speed up operations.

⚠️ Risks to be cautious of:

Rapid price changes may fail the trade before execution.

High withdrawal fees.