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Not entirely true. If you wait for the arbitrage opportunity to occur in the reverse direction, you can rebalance. But you take the risk of waiting days/weeks f
by hrmm1231321 9y ago
Not entirely true. If you wait for the arbitrage opportunity to occur in the reverse direction, you can rebalance. But you take the risk of waiting days/weeks for a reverse dip opportunity.
Source: I tried to make money arbitraging BTC back in 2015. I made a 2x return, entirely because of inflation, realized I didn't understand anything I was doing and pulled my 8k out. If only I had kept it in :)
- chatmasta 9y agoI would expect that the same exchanges tend to be on the same side of arbitrage spreads, for various reasons that could include lack of liquidity.
- hrmm1231321 9y agoIf you plot them, you will see the spreads intersect now and then. However, all the same risks apply e.g. with orders not being processed enough.