đč âProfit from Price Gaps: How Arbitrage Trading Worksâ đ
Arbitrage trading is a strategy that takes advantage of price differences for the same asset across different markets or exchanges. Itâs all about buying low in one place and selling high in another â often in a matter of seconds.
Hereâs how it works:
A trader spots Bitcoin priced at $120,100 on Exchange A, and $120,300 on Exchange B.
They buy on Exchange A and sell on Exchange B instantly.
The difference ($200 per BTC) becomes a risk-free profit â minus fees.
Arbitrage is most effective when markets are volatile or pricing lags between platforms. Speed, automation, and low transaction costs are key to maximizing gains. While the margins are usually small, high volume can turn it into a steady, low-risk profit engine.
In short? Arbitrage turns market inefficiencies into opportunities.
