#ArbitrageTradingStrategy
๐ ๐๐ซ๐๐ข๐ญ๐ซ๐๐ ๐ ๐๐ซ๐๐๐ข๐ง๐ ๐๐ญ๐ซ๐๐ญ๐๐ ๐ฒ โ ๐๐ฑ๐ฉ๐ฅ๐๐ข๐ง๐๐ ๐ฐ๐ข๐ญ๐ก ๐๐ฑ๐๐ฆ๐ฉ๐ฅ๐๐ฌ
Arbitrage trading is a low-risk strategy where traders profit from price differences of the same asset across different markets or platforms.
๐น ๐๐จ๐ฐ ๐๐ญ ๐๐จ๐ซ๐ค๐ฌ
Arbitrage traders monitor the prices of the same cryptocurrency (e.g., BTC, ETH, USDT) on different exchanges like ๐๐ถ๐ป๐ฎ๐ป๐ฐ๐ฒ ,and etc. When they detect a price gap, they execute a simultaneous buy and sell order to profit from the difference โ with zero market direction risk.
โ ๐๐๐ฏ๐๐ง๐ญ๐๐ ๐๐ฌ ๐จ๐ ๐๐ซ๐๐ข๐ญ๐ซ๐๐ ๐ ๐๐ซ๐๐๐ข๐ง๐
โข Low risk (if executed quickly and correctly)
โข Doesnโt depend on market direction
โข Can be automated with trading bots
โข Works well in volatile markets where price gaps are common
โ ๏ธ ๐๐ข๐ฌ๐ค๐ฌ & ๐๐ก๐๐ฅ๐ฅ๐๐ง๐ ๐๐ฌ
โข Transfer Delays: Crypto transfers can take time, during which the price gap may disappear
โข Fees: Trading, withdrawal, and gas fees can eat into profits
โข Slippage: Price may change before your trade is completed
โข Regulations: Some countries restrict arbitrage or have KYC limits
โข Capital Intensive: Often requires large volume for meaningful profits