Investopedia defines arbitrage as:
“The simultaneous purchase and sale of an asset in order to profit from a difference in the price. It is a trade that profits by exploiting price differences of identical or similar financial instruments, on different markets or in different forms. Arbitrage exists as a result of market inefficiencies; it provides a mechanism to ensure prices do not deviate substantially from fair value for long periods of time.”
I used to work at Salomon Smith Barney before the merger into Citigroup. The one of the highest earning depts was the Arb (arbitrage) unit. Unfortunately, in ‘real world’ markets, huge sums of cash were required to leverage tiny price differentials and having the skills to get in and out quick, at volume was risky business… and so scaled back when Citi took control.
There is a huge opportunity is crypto currencies with this kind of trading. As new coins come to market, and more exchanges open, the more opportunities there are to lock in some good trades.
However, this takes a lot of time and skill and an incredible awareness of what’s coming to market.
Hence, im very excited about Cryptobot. I’ve talked with the developer at length, and from some of the technology he shared in the IRC it looks very promising.
The automated process of spotting arbitrage opportunities has incredible value. Further than that, automated execution brings a new dimension to the crypto-currency markets.
The ‘waiting list’ is building: I’m trading for RUBY right now (the price is currently at a week low – so NOW IS a very good time to buy) and placing my refundable deposit on the waiting list.
Once Cryptobot is in full swing, human trades will be too slow. You just wont be able to compete – and, the further down the waiting list, the longer it will take to reap the advantage. Whats also interesting is the double advantage: not only automated earnings, but that this will inherently increase the value of RUBY.
The screenshot look fantastic!
