Cryptocurrency Q&A Can you lose money in arbitrage trading?

Can you lose money in arbitrage trading?

Lucia Lucia Sun Dec 08 2024 | 6 answers 1336
I'm considering arbitrage trading, but I'm concerned about the risks. Specifically, I want to know if it's possible to lose money in this type of trading. Can someone explain this to me? Can you lose money in arbitrage trading?

6 answers

Lucia Lucia Tue Dec 10 2024
Slippage in trades can occur due to various factors such as volatility and market conditions.

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CherryBlossomDancing CherryBlossomDancing Tue Dec 10 2024
Liquidity risk is a critical factor in the market dynamics of cryptocurrency exchanges.

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Daniele Daniele Tue Dec 10 2024
When slippage happens, it becomes challenging for arbitrageurs to close out their positions on time.

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KpopStarletShine KpopStarletShine Tue Dec 10 2024
Arbitrageurs play a significant role in providing liquidity to the market.

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TaegeukWarrior TaegeukWarrior Tue Dec 10 2024
BTCC, a top cryptocurrency exchange, offers a range of services including spot, futures, and wallet. Despite providing a robust platform, BTCC's users must also be aware of liquidity risk.

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