#ArbitrageTradingStrategy

How It Works

You exploit price inefficiencies by:

Buying low in one market

Selling high in another

📊 Types of Arbitrage

Spatial Arbitrage: Different exchanges (e.g., buy BTC on Binance, sell on Coinbase).

Statistical Arbitrage: Based on quantitative models predicting short-term price convergence.

Triangular Arbitrage: Currency trading exploiting mispriced exchange rates between three currencies.

Crypto Arbitrage: Profiting from price differences in cryptocurrencies across platforms.

DeFi Arbitrage: Using decentralized platforms like Uniswap, Aave for cross-protocol opportunities.

⚙️ Example: Crypto Arbitrage

BTC price on Exchange A = ₹25,00,000

BTC price on Exchange B = ₹25,10,000

Buy on A, Sell on B ⇒ ₹10,000 profit (minus fees/slippage)

✅ Pros

Low market risk (if executed fast)

Exploits inefficiencies

Can be automated with bots

⚠️ Cons

Requires high speed and capital

Exchange fees can eat profits

Risks: slippage, delays, regulation

📌 Tools & Tips

Use arbitrage bots for real-time execution

Track price differences using tools like CoinMarketCap, CoinGecko

Ensure fast fund transfers between platforms