#ArbitrageTradingStrategy

Arbitrage trading involves taking advantage of price discrepancies for the same asset across different markets or exchanges. Traders buy at a lower price in one place and sell at a higher price elsewhere, aiming for low-risk or even risk-free profits. Common forms include spatial arbitrage (across exchanges), temporal arbitrage (time-based gaps), and triangular arbitrage (currency mismatches). Automated bots are often used to execute these quick, precise trades. While each trade typically yields a small profit, high-frequency execution can lead to substantial gains. However, risks like trading fees, slippage, latency, and regulatory hurdles must be carefully managed.