#ArbitrageTradingStrategy Arbitrage trading strategy involves exploiting price discrepancies in different markets to generate low-risk profits. Here's how it works:

- *Types of Arbitrage*:

- *Spatial Arbitrage*: Buying an asset in one market and selling it in another at a higher price.

- *Triangular Arbitrage*: Exploiting discrepancies in exchange rates between three currency pairs.

- *Statistical Arbitrage*: Using mathematical models to identify mispriced assets.

- *Merger Arbitrage*: Profiting from price differences between a target company's stock and the acquisition price.

- *Convertible Arbitrage*: Trading convertible bonds and underlying equities to exploit pricing inefficiencies.

Arbitrageurs use sophisticated algorithms and high-frequency trading to capitalize on these opportunities.¹ ²