#ArbitrageTradingStrategy

The Arbitrage Trading Strategy involves exploiting price differences of the same asset across different markets or exchanges to earn risk-free profits. In the crypto world, this could mean buying a coin at a lower price on one exchange and simultaneously selling it at a higher price on another. Since digital assets often trade on multiple platforms with varying liquidity and demand, these price gaps—though usually small—create opportunities for quick gains. Common types include spatial arbitrage (across exchanges), triangular arbitrage (between three currency pairs), and statistical arbitrage (based on quantitative models). While arbitrage offers low-risk profit potential, it requires fast execution, low transaction fees, and sometimes significant capital or automation tools to be effective before price differences disappear.