Arbitrage trading is a strategy that exploits price differences of the same asset across different markets or exchanges. Traders buy the asset where the price is lower and simultaneously sell it where the price is higher, ensuring a risk-free profit. This strategy is common in cryptocurrency, forex, and stock markets. Types of arbitrage include spatial arbitrage ( between exchanges ), triangular arbitrage ( within currency pairs ), and statistical arbitrage ( based on historical patterns ). Speed and technology are key factors, as price gaps close quickly. Although profits per trade are small, large volume and automation can make trading highly profitable. Risks include slippage, fees, and execution delays. https://www.gate.com/share/xwrca15e
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Arbitrage trading is a strategy that exploits price differences of the same asset across different markets or exchanges. Traders buy the asset where the price is lower and simultaneously sell it where the price is higher, ensuring a risk-free profit. This strategy is common in cryptocurrency, forex, and stock markets. Types of arbitrage include spatial arbitrage ( between exchanges ), triangular arbitrage ( within currency pairs ), and statistical arbitrage ( based on historical patterns ). Speed and technology are key factors, as price gaps close quickly. Although profits per trade are small, large volume and automation can make trading highly profitable. Risks include slippage, fees, and execution delays. https://www.gate.com/share/xwrca15e