#ArbitrageTradingStrategy

Arbitrage trading involves exploiting price differences of the same asset across different markets to earn a profit. Traders buy low in one market and sell high in another almost simultaneously. This strategy is commonly used in cryptocurrencies, forex, and stocks. Key types include spatial arbitrage (across exchanges), triangular arbitrage (within one exchange), and statistical arbitrage (algorithm-based). Speed, precision, and low transaction costs are crucial. While the profit per trade is often small, high-frequency execution can yield substantial gains. However, risks include execution delays, fees, and market volatility, making technology and timing critical in successful arbitrage trading.