#ArbitrageTradingStrategy
Arbitrage is a financial strategy that involves buying and selling the same or similar asset in different markets simultaneously. Arbitrage is done to profit from the price differences between different markets of the same asset. Traders look for these differences in the pricing of assets in different markets to make a profit
The arbitrage term itself was first used in the 18th century. In the early days, arbitrageurs would take advantage of price discrepancies in different markets by buying low in one market and selling high in another. Arbitrage became more sophisticated, with traders using complex algorithms and computer models to identify and exploit pricing inefficiencies. Arbitrage is a key strategy today used by hedge funds, investment banks, and other financial institutions to generate profits in a fast-paced, highly competitive global marketplace.
