#ArbitrageTradingStrategy #ArbitrageTradingStrategy
Arbitrage trading exploits price differences of the same asset across different markets or exchanges. For example, if Bitcoin is trading at $30,000 on Exchange A and $30,300 on Exchange B, a trader can buy low and sell high—earning a risk-free profit. Types of arbitrage include spatial arbitrage, triangular arbitrage, and statistical arbitrage. While it sounds simple, successful arbitrage requires fast execution, low fees, and advanced tools. Market inefficiencies are rare and short-lived, so automation and bots are often used. It’s low-risk but highly competitive.