Topic: Exchange rate difference between bitstamp and mtgox (Read 1536 times)
Can you get your USD out of MT. Gox?
I totally confused by this large exchange price difference, almost 10%
At first I thought this is a good chance to arbitrage, I buy some coin at bitstamp and sell them at mtgox instantly (bitcoin transfers are quick), and 10% profit made in one hour
But there might be some larger reason behind it: Some large clients at mtgox are in urgent need of USD, but they can not get their USD out of exchange in a timely fashion, so they buy bitcoin and transfer to bitstamp, and sell them there to withdraw USD, even take a 10% loss
So, the larger bid side and higher exchange rate at MTGOX just means that there are many more USD want to get out through bitcoin
What could be the truth
At first I thought this is a good chance to arbitrage, I buy some coin at bitstamp and sell them at mtgox instantly (bitcoin transfers are quick), and 10% profit made in one hour
But there might be some larger reason behind it: Some large clients at mtgox are in urgent need of USD, but they can not get their USD out of exchange in a timely fashion, so they buy bitcoin and transfer to bitstamp, and sell them there to withdraw USD, even take a 10% loss
So, the larger bid side and higher exchange rate at MTGOX just means that there are many more USD want to get out through bitcoin
What could be the truth
Jump to: