Timeline for Why don't people buy at one exchange and sell at another?
Current License: CC BY-SA 3.0
10 events
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| Dec 20, 2013 at 8:10 | comment | added | nponeccop | When I used to do arbitrage I built such tables for myself. The problem is that such tables are personalized. Your exchange commission is based on your volume and your transfer fees depend on your bank and/or payment system. Also I heard that professional traders include their risks into prices (e.g. "As I make mistakes or there are various delays I need to make at least X% on gox-bitstamp route to have it profitable on average"). So such table cannot exist or at least it will have limited applicability. | |
| Nov 26, 2013 at 2:09 | vote | accept | Pacerier | ||
| Aug 16, 2013 at 14:11 | comment | added | Meni Rosenfeld | @DanielS. : Normally all these steps add up to much less than 10%. However, right now it's simply virtually impossible to withdraw funds from Mtgox. | |
| Aug 15, 2013 at 15:49 | history | edited | Daniel S. | CC BY-SA 3.0 |
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| Aug 15, 2013 at 15:40 | comment | added | Daniel S. | Example: transfer fiat to bitstamp, buy at 100, get bitcoin out of bitstamp, transfer bitcoins to mtgox, sell at 110, get fiat out of mtgox. these are 6 steps for a roundtrip. you have utilized the spread of 10% only once, but for more than one of the steps you have to pay a percentage on the full amount. Btw, if you find a nice table with the exact fees outlined for a roundtrip, let me know. | |
| Aug 15, 2013 at 15:38 | comment | added | Daniel S. | It's not about the spread alone. As explained, a lot of your profits from the spread get taken away from the fees of transfers and trading. Make your own calculations of the fees and I bet you will end up somewhere at 10%. This seems high, but remember that you have to transfer the amount multiple times between exchanges to make a complete roundtrip. So if you have e.g. 2.5% fees for each trade and for each transfer on avergage, this nicely lines up with the 10% total. | |
| Aug 15, 2013 at 15:32 | comment | added | Pacerier | Do you mean that for one whole month no one bothered to do arbitrage trading even when the spread is 10% (quite high)? | |
| Aug 15, 2013 at 15:05 | review | First posts | |||
| Aug 16, 2013 at 18:16 | |||||
| Aug 15, 2013 at 14:54 | history | edited | Daniel S. | CC BY-SA 3.0 |
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| Aug 15, 2013 at 14:48 | history | answered | Daniel S. | CC BY-SA 3.0 |