Arbitrage trading strategy is a strategy that exploits the price differences of an asset in two or more markets to achieve instant profit. In the crypto world, this occurs when the price of a coin differs between one exchange and another. Arbitrage traders will buy in the market with a lower price and immediately sell in the market with a higher price. This strategy seems simple, but it requires speed, sufficient capital, and technological understanding to execute efficiently. The main risks lie in transaction costs, execution speed, and rapid price fluctuations. With careful calculations, arbitrage can become a stable profit strategy.
#ArbitrageTradingStrategy