#ArbitrageTradingStrategy #ArbitrageTradingStrategy

Arbitrage trading capitalizes on simultaneous price discrepancies for the same asset across different markets. The core idea is to buy low in one market and instantly sell high in another, locking in a risk-free profit. While theoretically risk-free, practical challenges exist, such as execution risk (prices changing before both legs of the trade are completed) and transaction costs (fees eroding profits). Modern arbitrage heavily relies on high-frequency trading algorithms to detect and exploit these fleeting opportunities, which have become less frequent due to increased market efficiency. Nevertheless, it remains a fundamental strategy for exploiting temporary market inefficiencies.