Is it a good time to Arbitrage?

[Flight-87]

I'm new in arbitrage trading and haven't performed it yet reading of the risks and uncertainties that comes with it, but I want to risk it anyway. What I understand from my studies is it's maybe not a good decision to do this kind of trading when the market is dumping. What are your thoughts on this?

[tora]

Arbitrage works by trading coins using the difference in price between different prices on exchanges. Whether market is rising or falling does not matter as long as there is no lag in time between exchange happening.

[Flight-87]

Whether market is rising or falling does not matter...

I can't quite agree with that statement. In a falling market by the time I get to sell my coins, the price may have already down lower than my buying price. When the trend is upward, the risk is a lot less then.

[buwaytress]

Whether market is rising or falling does not matter...

I can't quite agree with that statement. In a falling market by the time I get to sell my coins, the price may have already down lower than my buying price. When the trend is upward, the risk is a lot less then.

Yes, but what if you're buying? Then the opposite is true. Arbitrage is looking at the price difference across different exchanges, regardless of market movement. For example, right now, because of recent crackdowns in India and Pakistan, Bitcoin price there is about $1,000 lower than the global average (because there's less demand, and added risk). So, whether you buy or sell, prices there are lower. In this case, arbitraging would seek to Buy from Pakistan and sell globally.

Conversely, where prices are higher, like in Zimbabwe, arbitraging seeks to buy globally and sell in Zimbabwe.

[vit05]

Always is. The market needs people who continually do arbitrage. The principle of the market is that at that time, the price will always be the correct one. For being the price people are willing to buy and sell. But the big thing is that in certain markets prices may be too far apart. This is a profit opportunity and is beneficial to all.

[Flight-87]

Always is. The market needs people who continually do arbitrage. The principle of the market is that at that time, the price will always be the correct one. For being the price people are willing to buy and sell. But the big thing is that in certain markets prices may be too far apart. This is a profit opportunity and is beneficial to all.

Good point. I'm worried about reliable exchanges though. What's your choice?