I've posted about this before asking if it's possible to actually buy "cheap" bitcoins at one exchange and sell them at a profit. Since I couldn't find any answer to my question I decide to conduct an experiment myself.
I started out by buying BTC at BTC-e at a price of $69, then moved the 0.48BTC to Gox and exchanged it back to USD. The result was that I ended up with $77.7. This made me very happy of course
But after a short while I realized that it would take some times to get that money back from Gox. This means that it's not arbitrage but more like a profitable loan. It got me thinking that perhaps doing the same process but only with a more flexible exchange might still be profitable.
Here is the complete post -
http://bitcoinwithpaypal.com/arbitraging-bitcoin-real-live-case-study/. I will try the same thing with a different exchange then Gox one of my next Posts.