Mastering Arbitrage Trading: Unlock Low-Risk Profits Across Markets
How to Make Money Through Arbitrage Trading: A Step-by-Step Guide Arbitrage trading is a low-risk method of earning money by taking advantage of price differences for the same asset across different markets. This strategy is popular in cryptocurrency, stock, and forex trading. By buying an asset in one market at a lower price and selling it in another at a higher price, traders can lock in profits with minimal risk. Here’s a comprehensive guide to help you start arbitrage trading. What is Arbitrage Trading? Arbitrage trading involves simultaneously buying and selling an asset to exploit price differences across various platforms or markets. The difference in price—known as the "spread"—is where arbitrage traders make their profit. For instance, if Bitcoin is trading for $28,000 on one exchange and $28,200 on another, you can buy Bitcoin on the cheaper exchange and sell it on the more expensive one to earn a $200 profit per Bitcoin (minus fees). Types of Arbitrage Tra...