#TradingStrategyMistakes ArbitrageTradingStrategy
The arbitrage trading strategy involves "
-*Exploiting price differences* of the same assets across different markets or exchanges.
- "Traders buy" at a low price in one market and simultaneously sell at a higher price in another market, thereby achieving risk-free profits.
-"*This strategy requires*" speed, accuracy, and advanced technology, as price gaps are often small and short-lived.
- Common types include spatial arbitrage (between exchanges), triangular arbitrage (within a single exchange using three currencies), and statistical arbitrage (based on quantitative models).
- Although arbitrage trading is generally low-risk, it requires high capital, rapid execution, and close monitoring of fees, slippage, and market conditions to maintain profitability and efficiency.