Does anyone knows Bitcoin Arbitrage? - page 4.

mayflor2

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Quote from: BTC786 on June 04, 2015, 03:06:35 PM

Does anyone knows Bitcoin Arbitrage?

How does it works?

Please explain

The problem is, any major exchanges have arbitrage servers, so almost immediately when the price changes the servers sell or buy accordingly and they even out very quickly. It is very hard to make a profit that way these days.

pooya87

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does this work?
i mean you have to consider the fees too. which means you have to pay the fees twice, once where you buy and once where you sell.
is the difference between exchangers that high to cover the fee and give you profit?

besides it takes time to cash out of exchanger, it need to get confirmed by the exchanger and then goes to your other address and get 3 or more confirmations.
what if the price changes in this time?

subSTRATA

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:^)

Quote from: NUFCrichard on June 04, 2015, 03:47:39 PM

If it is 2-3% profitable, it is 2-3% profitable, the amount of capital used is irrelevant.
If people want to trade their 0.5BTC to make 0.0002BTC, that is still guaranteed profit, there is not need to have too much capital.

Often the amounts that can be traded at the ARB price are also very limited, so again, capital wouldn't help.

youve got a point, profit is profit; i may have used poor wording here, when i said profit i meant something along the lines of a substantial portion of one's income. also I dont use exchanges very often if at all, so I was not aware the trading limits would restrict arbitrage so much

NUFCrichard

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Quote from: subSTRATA on June 04, 2015, 03:37:59 PM

Quote from: sherbyspark on June 04, 2015, 03:22:29 PM

Quote from: BTC786 on June 04, 2015, 03:06:35 PM

Does anyone knows Bitcoin Arbitrage?

How does it works?

Please explain

Bitcoin Arbitrage is taking advantage of the price different between 2 exchanges. Say if exchange 1 has buy orders for 100$. And Exchange 2 has sell orders for 99$. Then you would buy from E2 and sell at E1. For every bitcoin you will get that 1$ extra, which is arbitrage.

For discussions regarding arbitrage found this thread : https://bitcointalksearch.org/topic/bitcoin-arbitrage-pros-and-cons-experience-and-profitability-528691 .

yup. you should also keep in mind that arbitrage in terms of anything; exchanges, bookies, etc, is only very profitable if a large amount of capital is used as the percent variance is very small. in the most ideal cases you would only be seeing 2-3% profit.

If it is 2-3% profitable, it is 2-3% profitable, the amount of capital used is irrelevant.
If people want to trade their 0.5BTC to make 0.0002BTC, that is still guaranteed profit, there is not need to have too much capital.

Often the amounts that can be traded at the ARB price are also very limited, so again, capital wouldn't help.

subSTRATA

legendary

Activity: 1288

Merit: 1043

:^)

Quote from: sherbyspark on June 04, 2015, 03:22:29 PM

Quote from: BTC786 on June 04, 2015, 03:06:35 PM

Does anyone knows Bitcoin Arbitrage?

How does it works?

Please explain

Bitcoin Arbitrage is taking advantage of the price different between 2 exchanges. Say if exchange 1 has buy orders for 100$. And Exchange 2 has sell orders for 99$. Then you would buy from E2 and sell at E1. For every bitcoin you will get that 1$ extra, which is arbitrage.

For discussions regarding arbitrage found this thread : https://bitcointalksearch.org/topic/bitcoin-arbitrage-pros-and-cons-experience-and-profitability-528691 .

yup. you should also keep in mind that arbitrage in terms of anything; exchanges, bookies, etc, is only very profitable if a large amount of capital is used as the percent variance is very small. in the most ideal cases you would only be seeing 2-3% profit.

sherbyspark

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Activity: 910

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Quote from: BTC786 on June 04, 2015, 03:06:35 PM

Does anyone knows Bitcoin Arbitrage?

How does it works?

Please explain

Bitcoin Arbitrage is taking advantage of the price different between 2 exchanges. Say if exchange 1 has buy orders for 100$. And Exchange 2 has sell orders for 99$. Then you would buy from E2 and sell at E1. For every bitcoin you will get that 1$ extra, which is arbitrage.

For discussions regarding arbitrage found this thread : https://bitcointalksearch.org/topic/bitcoin-arbitrage-pros-and-cons-experience-and-profitability-528691 .

BTC786

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Activity: 495

Merit: 250

Does anyone knows Bitcoin Arbitrage?

How does it works?

Please explain

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