#ArbitrageTradingStrategy Arbitrage trading exploits temporary price discrepancies of an asset across different markets or forms. For instance, if a stock is trading at $10.00 on Exchange A and $10.05 on Exchange B, an arbitrageur would simultaneously buy on Exchange A and sell on Exchange B, locking in a $0.05 per share profit. This strategy is considered low-risk as it doesn't speculate on future price movements, but rather capitalizes on existing inefficiencies. High-frequency trading firms often employ sophisticated algorithms to detect and execute these opportunities within milliseconds, making manual arbitrage increasingly challenging due to the speed at which these discrepancies are corrected.