Course Content
What Is Arbitrage Trading?
Arbitrage trading is a relatively low-risk trading strategy that takes advantage of price differences across markets. Most of the time, this involves buying and selling the same asset (like Bitcoin) on different exchanges. Since the price of Bitcoin should, in theory, be equal on Binance and on another exchange, any difference between the two is likely an arbitrage opportunity. This is a very common strategy in the trading world, but it’s mostly been a tool of large financial institutions. With the democratization of financial markets thanks to cryptocurrencies, there might be an opportunity for cryptocurrency traders to take advantage of it, too.
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What Is Arbitrage Trading?
About Lesson

Being able to take advantage of arbitrage trading is a great opportunity for cryptocurrency traders. With the right amount of speed and capital to participate in these types of strategies, you could find yourself executing low-risk, profitable trades in no time.

The risk associated with arbitrage trading shouldn’t be overlooked. While arbitrage trading might imply “risk-free profit” or “guaranteed profit”, the reality is there’s enough risk involved to keep any trader on their toes.

Still have questions about arbitrage trading or statistical arbitrage? Check out our Q&A platform, Ask Academy, where the Binance community will answer your questions.
Exercise Files
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