Arbitrage Trading: While it is rewarding you must get yourself aware about the risk that comes with it

Welcome back,

In today's blog I will going to share about Arbitrage trading with all of you. Trading has many different forms and out of those we will talk about the trading which sounds simple but is actually not simple for anyone who is new to this place.

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Arbitrage trading or cross trading is what we usually use for this type of trading. Here an asset, a coin is trading at different prices on different places and to make profit out of this situation is what we call arbitrage trading.

For example,

• If coin-A is trading at two different exchanges with different prices here is what is the best way to do arbitrage.

Exchange A: Coin-A/USDT = $0.38
Exchange B: Coin-A/USDT = $0.40

Now you must have some coin-A as well as USDT on both the exchanges and by this you can sell the same coin for more price and buy it for less on the other exchange. This is how you still have the same number of coins with benefits.

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To practice Arbitrage, you must have complete and proper knowledge about the coin you are playing with. Sometimes a coin is new, and it might not be a good to do arbitrage with them.

Always do it when you have the same coin on both the exchanges as sometimes when you buy and then transfer the token to other exchange it can take time and the opportunity to arbitrage will miss in that case. I have done arbitrage with MARSH token which you can find on MEXC Global and Ku-Coin.

Thank You and Happy trading everyone.