#ArbitrageTradingStrategy #ArbitrageTradingStrategy

Arbitrage trading strategy exploits price differences of the same asset across different markets. Traders buy low in one exchange and sell high in another simultaneously, securing a risk-free profit. This strategy requires fast execution, low latency systems, and efficient capital allocation. Common types include spatial arbitrage (between exchanges), triangular arbitrage (within one exchange using different currency pairs), and statistical arbitrage (based on mathematical models). While profits per trade are small, high-frequency trades can generate significant returns. However, it demands vigilance, advanced tools, and often large capital. Market inefficiencies that allow arbitrage are usually short-lived, requiring quick decision-making and execution.