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This doesn't actually ever send coins over the network. It shorts on one exchange and goes long on the other. As such it is market neutral (since prices should
by ReverseCold 9y ago
This doesn't actually ever send coins over the network. It shorts on one exchange and goes long on the other.
As such it is market neutral (since prices should converge) and transaction time doesn't matter.
Still doesn't work too well.
- WJW 9y agoIn particular "prices should converge" is hiding a pretty big precondition in very few words. You don't only need prices to converge, but you need them to converge within a reasonable time span, which is obviously not guaranteed. (because if the market was efficient already then the prices would have converged already and it would not be feasible to run arbitrages like this)
- lodi 9y agoIt's the other way around... market efficiency is caused by things like this (not only arbitrage, but that's one important factor).
- SZJX 9y agoAh OK. I didn't read it carefully then. My bad. But then this is apparently not guaranteed to work since there's in most cases a permanent spread between exchanges due to various factors, e.g. their availability in countries, their fiat withdrawal cost, etc. Transferring coins fast enough might be a more feasible idea actually.