Arbitrage opportunity?? - page 2. | Bitcointalksearch.org

cassimares

full member

Activity: 236

Merit: 100

Quote from: rudz on November 03, 2013, 12:48:26 PM

I am looking to buy BitCoins. When I was doing a little research on trading websites, I found something interesting, yet strange.

Some of you are familiar with the term arbitrage. For those who don't, arbitrage means "the simultaneous buying and selling of securities, currency, or commodities in different markets or in derivative forms in order to take advantage of differing prices for the same asset." Which basically means making money out of nothing. And in the world of finance and economics, arbitrage doesn't exist because the prices reach to a point of equilibrium.

Anyway, price of BTC on MtGox is $212, and on BTC-e it is $203. Now what stops me from buying BTC from BTC-e and sell them on MtGox?? Thus making a profit of $9 for every BTC.
I am sure something is weird here and this doesn't work for some reason because everyone would be doing so. Can someone who knows about trading in these sites explain to me how the process work? and how come they have different prices of BTC? and if I can't use this arbitrage opportunity, what would be the reason?

Thank you

Not arbitrage, its 100% loss.... look up the forum and you understand more about MtGox and why the price is higher....

Shallow

sr. member

Activity: 938

Merit: 255

SmartFi - EARN, LEND & TRADE

Yeah everyone realised this as soon as price discrepancies began appearing. But think to yourself, if it did work, why isn't everyone doing it?

notme

legendary

Activity: 1904

Merit: 1002

Gox withdrawals work well in some places, not in others.

Regarding arbitrage, in any case you will have fees. This will limit what you can do profitably, even if your funds flow is working properly. Trade fees on both exchanges and multiple fiat wire fees will keep the gap from closing completely. That said, opportunities do appear sometimes if you keep an eye out.

Lord F(r)og

donator

Activity: 477

Merit: 250

Quote from: uck on November 03, 2013, 01:27:36 PM

so is it true that Gox doesnt allow USD withdrawal to anyone, anywhere on the planet? or just to USA customers? Seems like they should be able to transact USD with say, someone in Belgium...

where the heck you got such BS from?

uck

member

Activity: 94

Merit: 10

so is it true that Gox doesnt allow USD withdrawal to anyone, anywhere on the planet? or just to USA customers? Seems like they should be able to transact USD with say, someone in Belgium...

Lord F(r)og

donator

Activity: 477

Merit: 250

You will end up stucked your funds in gox. There are lots of threads about that issue. check mtgox' withdrawal procedure there: https://support.mtgox.com/entries/21649594-Withdrawals-and-Deposits

most recent thread: https://bitcointalksearch.org/topic/mtgox-withdrawal-delays-gathering-179586

rudz

newbie

Activity: 9

Merit: 0

I am looking to buy BitCoins. When I was doing a little research on trading websites, I found something interesting, yet strange.

Some of you are familiar with the term arbitrage. For those who don't, arbitrage means "the simultaneous buying and selling of securities, currency, or commodities in different markets or in derivative forms in order to take advantage of differing prices for the same asset." Which basically means making money out of nothing. And in the world of finance and economics, arbitrage doesn't exist because the prices reach to a point of equilibrium.

Anyway, price of BTC on MtGox is $212, and on BTC-e it is $203. Now what stops me from buying BTC from BTC-e and sell them on MtGox?? Thus making a profit of $9 for every BTC.
I am sure something is weird here and this doesn't work for some reason because everyone would be doing so. Can someone who knows about trading in these sites explain to me how the process work? and how come they have different prices of BTC? and if I can't use this arbitrage opportunity, what would be the reason?

Thank you

Topic: Arbitrage opportunity?? - page 2. (Read 3579 times)