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RE: Coin Watch : Bitcoin Arbitrage Tool

in #bitcoin8 years ago (edited)

Yes, that's definitely true. Fees can easily eat up any potential profit. The way that I think about the price gap is that it helps give indicators on when to buy, by stacking the odds in your favor ever so slightly. If you buy during a price gap on the lower side, the prices should eventually equalize, which may marginally raise your odds of profit. This is a more passive version of arbitrage vs active trading between the two systems.