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Title: Arbitrage is actually impossible? Post by: k_arbitrageur on January 04, 2018, 01:55:30 PM News
Someone bought a bitcoin in the United States 21% cheaper and sold it to Korea. However, since it excludes the commission, it is rather loss. http://m.chosun.com/svc/article.html?sname=news&contid=2018010400441&Dep0=www.google.com Arbitrage is able to work only in your idea? Or is Actually possible? Title: Re: Arbitrage is actually impossible? Post by: tora on January 04, 2018, 07:02:29 PM It ia possible but with small amounts charges will outweigh the profit. Also prices may change before transactions complete.
Title: Re: Arbitrage is actually impossible? Post by: MBielsa on January 05, 2018, 12:56:08 AM Depends on the case. Maybe this one they didn't do the math correctly, but today there was a coin that made many people rich :)
Title: Re: Arbitrage is actually impossible? Post by: AdVATARd on January 05, 2018, 08:38:32 AM You need a LOT of capital and you need to use exchanges where you don't need to worry about your assets being froze. Ideally you'll short sell on the more expensive exchange and purchase on the cheaper exchange. This way you can replace the bitcoin you shorted with the cheaper bitcoin, meaning that you can eliminate a lot of the risk. Then arbitrage also involves the recycling of funds, which is the tricky part. You need to pay a bank to transfer your money, which is generally on a sliding scale of fees. Higher total amounts of currency will naturally require lower % fees to transfer. If you use normal individual consumer level banking, you can expect the whole arbitrage process to take 6-10 business days from account all the way around again to your account.
I think I'm going to write a blog post about this topic. |