Quote:
Originally Posted by Ulic Qel-Droma
lol according to that page there's huge arbitrage opportunities.... like all the time.
as long as prices are not exactly the same across two or more exchanges, there's opportunity for arbitrage.
the question is whether or not the orders can be executed and confirmed fast enough (instantaneously) to reduce the risk to near 0... aka free money.
like my example above... 300 and 282.5... 17.5btc spread.
even after withdraw fees and all that crap... 17.5 is a lot.
even if it were 5.. or 1 spread
and why would withdrawal fees matter?
u have one account at exchange A and one account at exchange B... u have money in both accounts, you're just selling it to another buyer on one account, and buying from a seller on another account. you're not withdrawing anything (until you choose to cash out finally).
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Edit: removed idiotic rambling I copied and pasted from a shitty blog
You are selling from the same exchange another... Prices are different, but they will probably never be reversed (ie you will always go from BTC-E to GOX for instance, but never the other way around)
So you deposit $2000 to BTC-E and buy 10 bitcoin let's say. There will be a fee for this.
You have to transfer that 10 bitcoin to MTG. BTC-E will charge a bit for this (not sure how much)
Then you sell 10 BTC for $2500 or whatever at MTG.. This will have a fee too.
Now you have cash sitting in your MTG account. You need to get that cash out to your bank account so you can deposit it back to BTC-E and start all over again...
The thing is I don't know what any of these fees are.. ANd maybe I am wrong about the process, but this is how it works in my head. You can't just move USD from one exchange to the other. You have to bring it to your account, report the income when tax time comes, and deposit it to the exchange again...