#ArbitrageTradingStrategy

Arbitrage in trading is a tactic to exploit price variations of an identical financial asset between different platforms or stock exchanges. It consists of buying the asset in the market with the lowest price and concurrently selling it in the one with the highest price, with the aim of securing a virtually risk-free profit.

The effectiveness of arbitrage depends on the detection and immediate execution of these price anomalies. Although market risk is low, operational and latency risks can be significant, as these spread opportunities are often quickly eliminated by the competition of high-frequency traders.