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I have made calculations based on 3 exchange buy and sell orders. (Cryptsy, C-cex and Bter) and have taken DOGE/BTC market into account.

Both cryptsy and C-cex have the same calculations to get the net total amount(Final amount including transaction fee) for both buy and sell order. In these exchanges Both buy and sell exchange transaction fee are in terms of BTC for DOGE/BTC market. But bter has different calculation on sell order and same calculation for buy order as in cryptsy and C-cex. Here buy transaction fee in terms of BTC and sell transaction fee in terms of DOGE.

I am greatly confused about calcuting profit? Kindly look at both Cryptsy and Bter websites to see the difference between sell orders.

DOGE/BTC Market

case (1): Both buy and sell exchange transaction fee are BTC (cryptsy-buy, C-cex- sell)

Buy Exchange = Cryptsy

Sell Exchange = C-Cex

buy amount = 1 DOGE

sell amount = 1 DOGE

buy price = 0.0000038 BTC //taken from cryptsy exchange DOGE/BTC buy

sell price = 0.0000042 BTC //taken from Ccex exchange DOGE/BTC sell

buy_ex_txn_fee = 0. 002 BTC (0.2%)

sell_ex_txn_fee = 0. 0015 BTC (0.15%)

Buy order:

Total = buy_amount * buy_price (Total = 1 * 0.0000038 = 0.0000038 BTC) 

buy_txn_fee =  Total * buy_ex_txn_fee (buy_txn_fee  =  0.0000038 * 0. 002 = 0.000000008  BTC)

buy_order_Net_total =   Total +  buy_txn_fee (buy_order_Net_total = 0.000003808 BTC)

Sell order:

Total = sell_amount * sell_price (Total = 1 * 0.0000042 = 0.0000042 BTC) 

sell_txn_fee =  Total * sell_ex_txn_fee (sell_txn_fee  =  0.0000038 * 0. 0015 = 
0.000000006  BTC)

sell_order_Net_total =   Total - sell_txn_fee (sell_order_Net_total =  0.000004194 BTC)

Profit:

 Profit =   sell_order_net_total – buy_order_net_total (Profit =0.000004194 BTC -  0.000003808  BTC = 0.000000386 BTC)

Case (2): (For the same DOGE/BTC market buy transaction fee in terms of BTC(cryptsy) and sell transaction fee in terms of DOGE(Bter))

Buy Exchange = Cryptsy

Sell Exchange = Bter

buy amount = 1 DOGE

sell amount = 1 DOGE

buy price = 0.0000038 BTC

sell price = 0.0000042 BTC

buy_ex_txn_fee = 0. 002 BTC (0.2%)

sell_ex_txn_fee = 0. 0018 DOGE (0.18%)

Buy order:

Total = buy_amount * buy_price (Total = 1 * 0.0000038 = 0.0000038 BTC) 

buy_txn_fee =  Total * buy_ex_txn_fee (buy_txn_fee  =  0.0000038 * 0. 002 = 0.000000008  BTC)

buy_order_Net_total =   Total +  buy_txn_fee (buy_order_Net_total = 0.000003808 BTC)

Sell order:

Total = sell_amount * sell_price (Total = 1 * 0.0000042 = 0.0000042 BTC) 

**// sell_ex_txn_fee is in terms of DOGE. How should I calculate profit?**

Profit:

Profit = ???

Am I heading in correct direction? Is there any other easiest way to calculate profit? If possible kindly explain me with sequence of steps?

  • 2
    What you are doing different from 'most' arbitrage options, is that you swap buy and sell. Arbitrage works because of the direct sell and buy options. What you are doing now, is spread trading. You wait untill someone else accept your offer, instead of the other way around. You depend on other people. – Mathias711 Jul 2 '14 at 9:15
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    Please join me in chat, as there are more things I have to say and ask, otherwise we'll spam the whole comment block here. I made a new room, and I have no friggin' clue how to force you in, so you have to come willingly :) – Mathias711 Jul 2 '14 at 9:16
  • @mathias711 - yeah sure. Give me the link – Jsd Jul 2 '14 at 9:23
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The formula for sell_order_Net_total will be:

 sell_order_Net_total = sell_amount * sell_price * (1- sell_ex_txn_fee)

The final profit:

Profit = sell_order_Net_total - buy_order_Net_total

Keep in mind that there are also transaction fees between the two exchanges. If you have traded all your DOGEs for BTC on 1 exchange, and BTC for DOGEs on the other, you'll want to mix both accounts with an equal amount of DOGE/BTC. The transaction fees should also be accounted for if you want to trade between exchanges.

  • Mathias &711 - Greatest job & greatest man. Thanks. – Jsd Jul 2 '14 at 12:04
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I have created a custom script to calculate your profit from trading between two exchanges. You can customize the Buy and Sell price. The script also takes into account the transfer fees and Buy and sell fees. I plan on working on this script more but I want to see how much interest I receive. Would like to include:

  • Live updates on prices from different exchanges.
  • Quick trading with Trade Secrets and Trade Tokens.

I can't wait to here the feedback. http://theark.io/projects/btcarb/

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