#ArbitrageTradingStrategy ArbitrageTradingStrategy: Profit from Price Gaps Like a Market Maker**

Arbitrage trading exploits price differences across markets – here’s how to capitalize on inefficiencies safely:

### **1. Types of Arbitrage**

✔ **CEX vs. CEX** (e.g., BTC priced $500 higher on Coinbase vs. Binance)

✔ **CEX vs. DEX** (Buy on Uniswap, sell on Binance for profit)

✔ **Futures vs. Spot** (Funding rate gaps)

### **2. Step-by-Step Execution**

1️⃣ **Monitor price gaps** in real-time (e.g., CoinGecko, TradingView alerts)

2️⃣ **Calculate fees** (withdrawal, gas, trading commissions)

3️⃣ **Execute fast** – gaps close in minutes (use bots if possible)

### **3. Risks to Avoid**

⚠️ **Withdrawal delays** (can erase profits)

⚠️ **Slippage on DEXs** (set max limits)

⚠️ **Exchange insolvency risk** (stick to top CEXs)

### **4. Tools You Need**

• **Arbitrage scanners** (e.g., Arbiscan, Breadcrumbs)

• **Low-latency connections** (reduce execution time)