#ArbitrageTradingStrategy Arbitrage Trading Strategy
Arbitrage trading exploits price discrepancies of the same asset across different markets to lock in risk-free profits. Common types include:
1. Spatial Arbitrage: Buying an asset at a lower price in one market and selling it higher in another.
2. Triangular Arbitrage: Leveraging currency pairs' exchange rate differences in forex markets.
3. Statistical Arbitrage: Using quantitative models to identify mispriced securities based on historical trends.
Arbitrage relies on speed and efficiency, often requiring algorithmic trading. While opportunities are fleeting due to market efficiency, high-frequency traders and hedge funds still capitalize on tiny price gaps for scalable gains.
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