This is the moment for arbitrage trading

Goms

sr. member

Activity: 350

Merit: 250

Quote from: oblivi on November 09, 2015, 11:00:11 AM

Quote from: Videodrome on November 08, 2015, 11:39:26 AM

yes but how can you handle arbitrage with the long time needed for a BTC transaction?

This is not the problem, BTC transactions are fast, what's slow as hell is depositing the fiat in different exchanges. If you pay a reasonable fee, your money will be on the exchange in 10 minutes.

But the fee will eat into your profit margin. So sometimes one need to check if the left over profit is tangible.

bitmarket.net

sr. member

Activity: 323

Merit: 250

Quote from: RustyNoman on December 23, 2015, 11:17:23 AM

Quote from: bitmarket.net on November 11, 2015, 07:21:47 AM

The best way to do the arbitrage is to have the money (both btc and fiat, since you may not know in advance which way the arbitrage will work) ready at both markets.
Then you can execute both legs of the trade at the same time and exclude the market risk, but on the other hand you will need to commit more capital.

This means you have large amount of money in several exchanges, it might not be a good idea.

Yes, there might be some counterparty risk involved.
One should always choose the exchange carefully - if it's not trustworthy enough to keep money there for few days, should you be keeping your money there for few hours ?

mobnepal

legendary

Activity: 1218

Merit: 1006

Quote from: densuj on November 23, 2015, 06:41:32 AM

Quote from: xiaoxiaox on November 03, 2015, 03:17:46 PM

There is some chaos going on with the price and all exchanges are offering different prices!
The arbitrage method here is as simple as it could be:

1. Buy BTC at http://btc-e.com

2. Sell BTC at http://thebitcoinexchange.io

The price difference at the moment is around $50!

Does is thebitcoinexchange.io save? I am doubt sell BTC on there. Roll Eyes

Exchanger or trading site without ssl certificates without any review could be scam. And what they offer from bitcoin to paypal, bitcoin to skrill they seem to be fishy.

RustyNoman

full member

Activity: 189

Merit: 100

Quote from: bitmarket.net on November 11, 2015, 07:21:47 AM

The best way to do the arbitrage is to have the money (both btc and fiat, since you may not know in advance which way the arbitrage will work) ready at both markets.
Then you can execute both legs of the trade at the same time and exclude the market risk, but on the other hand you will need to commit more capital.

This means you have large amount of money in several exchanges, it might not be a good idea.

densuj

legendary

Activity: 910

Merit: 1000

Quote from: xiaoxiaox on November 03, 2015, 03:17:46 PM

There is some chaos going on with the price and all exchanges are offering different prices!
The arbitrage method here is as simple as it could be:

1. Buy BTC at http://btc-e.com

2. Sell BTC at http://thebitcoinexchange.io

The price difference at the moment is around $50!

Does is thebitcoinexchange.io save? I am doubt sell BTC on there. Roll Eyes

bitmarket.net

sr. member

Activity: 323

Merit: 250

Quote from: doggieTattoo on November 10, 2015, 08:52:53 AM

Quote from: xiaoxiaox on November 03, 2015, 03:17:46 PM

There is some chaos going on with the price and all exchanges are offering different prices!
The arbitrage method here is as simple as it could be:

1. Buy BTC at http://btc-e.com

2. Sell BTC at http://thebitcoinexchange.io

The price difference at the moment is around $50!

Trading between two exchanges can be an advantage only if you can get the bank transactions done quicker (which is highly unlikely). By the time you will change your BTCs the price would be a lot different. Think about the large fee you will have to pay at the exchange to rush your transactions.

The best way to do the arbitrage is to have the money (both btc and fiat, since you may not know in advance which way the arbitrage will work) ready at both markets.
Then you can execute both legs of the trade at the same time and exclude the market risk, but on the other hand you will need to commit more capital.

doggieTattoo

full member

Activity: 209

Merit: 100

Quote from: xiaoxiaox on November 03, 2015, 03:17:46 PM

There is some chaos going on with the price and all exchanges are offering different prices!
The arbitrage method here is as simple as it could be:

1. Buy BTC at http://btc-e.com

2. Sell BTC at http://thebitcoinexchange.io

The price difference at the moment is around $50!

Trading between two exchanges can be an advantage only if you can get the bank transactions done quicker (which is highly unlikely). By the time you will change your BTCs the price would be a lot different. Think about the large fee you will have to pay at the exchange to rush your transactions.

RKing

newbie

Activity: 56

Merit: 0

Quote from: oblivi on November 09, 2015, 11:00:11 AM

Quote from: Videodrome on November 08, 2015, 11:39:26 AM

yes but how can you handle arbitrage with the long time needed for a BTC transaction?

This is not the problem, BTC transactions are fast, what's slow as hell is depositing the fiat in different exchanges. If you pay a reasonable fee, your money will be on the exchange in 10 minutes.

If the fee is higher than the arbitrage opportunity, then there is no point doing arbitrage. Time and fee is the most difficult part of this kind of trading strategy.

oblivi

hero member

Activity: 700

Merit: 501

Quote from: Videodrome on November 08, 2015, 11:39:26 AM

yes but how can you handle arbitrage with the long time needed for a BTC transaction?

This is not the problem, BTC transactions are fast, what's slow as hell is depositing the fiat in different exchanges. If you pay a reasonable fee, your money will be on the exchange in 10 minutes.

bitmarket.net

sr. member

Activity: 323

Merit: 250

Yes, there even has been some arbitrage opportunities between the major exchanges, such as Bitfinex and Bitstamp.

If are likely to find even more arbitrage opportunities if you compare prices between one of the major exchanges and the local and regional exchanges, especially these offereing trading in currencies different than USD, for example EUR, SGD or PLN.

Videodrome

hero member

Activity: 588

Merit: 503

Free Julian Assange

yes but how can you handle arbitrage with the long time needed for a BTC transaction?

RustyNoman

full member

Activity: 189

Merit: 100

The main problem of buying in btc-e is that it takes too long time to transfer deposit in to the exchanges. Some times takes days.

koinsuka

full member

Activity: 164

Merit: 100

Zap.org - Data Feed Oracle Marketplace

what??!! but $50 is not a gap, this very much amount, really?? why any very long gap every exchanger?

maokoto

hero member

Activity: 770

Merit: 500

✪ NEXCHANGE | BTC, LTC, ETH & DOGE ✪

yes the main problem with arbitrage is moving money between exchanges. Too slow and the opportunities dissapear. Bots are needed, and even then you have to hold money in the two exchanges, which is kinda risky.

eternalgloom

legendary

Activity: 1792

Merit: 1283

I think it's better to just use a bot if you want to do arbitrage trading.

This arbitrage bot is free but under development:
https://github.com/maxme/bitcoin-arbitrage

This one is very good but is not free:
https://www.haasonline.com

soleri

newbie

Activity: 6

Merit: 0

Hi,

I am also interested in arbitrage. I already have BTC in my Bitstamp account. My question is, if I send my BTC to an exchange which and sell it for USD at a higher rate. Can I then send the USD back to the original exchange and buy more BTC at a lower rate etc.

Thank you.

Soleri

Miracal

sr. member

Activity: 350

Merit: 250

Quote from: MF Doom on November 04, 2015, 07:48:43 AM

the last time I tried to transfer $ into my btc-e account I waited around for a week. I was trying to buy some LTC when it was $4, by the time they told me the transfer was unsuccessful LTC was $45.

Anyway, I think now may be a better time for trading LTC/BTC. As btc rises LTC usually does, but with a delay. Use that to your advantage.

If you really want to do an arbitrage trading then yes, go to the bank and get the transfer done as fast as they can. The long process at the bank usually kills the present profit opportunity most times.

Mickeyb

hero member

Activity: 798

Merit: 1000

Move On !!!!!!

Quote from: MF Doom on November 04, 2015, 07:48:43 AM

the last time I tried to transfer $ into my btc-e account I waited around for a week. I was trying to buy some LTC when it was $4, by the time they told me the transfer was unsuccessful LTC was $45.

Anyway, I think now may be a better time for trading LTC/BTC. As btc rises LTC usually does, but with a delay. Use that to your advantage.

That's why the price in btc-e exchange is always lower than elsewhere because it takes longer to get money in and out and it's also more expensive to do so with btc-e.

OP, this is like 5th arbitrage thread since the run started. Read through them. Arbitrage is very hard to do, it depends on many factors and it's much harder to do than it seems.

MF Doom

hero member

Activity: 560

Merit: 500

the last time I tried to transfer $ into my btc-e account I waited around for a week. I was trying to buy some LTC when it was $4, by the time they told me the transfer was unsuccessful LTC was $45.

Anyway, I think now may be a better time for trading LTC/BTC. As btc rises LTC usually does, but with a delay. Use that to your advantage.

freedomno1

legendary

Activity: 1834

Merit: 1094

Learning the troll avoidance button :)

There are really large arbitrages between exchanges not just the two mentioned above.
The main issue is that it takes a damn long time for a bank transfer to get through so its hard to put money into the exchange
But your right it is the time to deposit money into one exchange buy the Bitcoin there then send the Bitcoin to the other exchange take the profit and deposit back to the bank

Topic: This is the moment for arbitrage trading (Read 2377 times)