#ArbitrageTradingStrategy 🔍 What is Arbitrage Trading?

Arbitrage Trading Strategy is a strategy to profit from the price differences of the same asset across two or more different markets, with almost no market risk if done correctly.

📈 Key Features:

Component Details

Trading Asset For example: BTC on Binance and Coinbase

Strategy Buy on the exchange with the lower price, sell on the exchange with the higher price → profit from the difference

Common Types of Arbitrage Spot–spot, spot–futures, cross-exchange, triangular...

✅ Advantages:

Low risk if executed quickly and correctly.

Can be automated with bots to continuously exploit opportunities.

⚠️ Risks:

Transaction fees and coin transfer fees can erode profits.

Latency can cause missed opportunities.

Large capital is needed to capture small differences.

🧠 In summary:

Arbitrage Trading Strategy = Simultaneously buying and selling an asset in two markets to profit from price differences, low profit but low risk.