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RE: What is Arbitrage, how is it done?

in #bitcoin7 years ago

The greatest challenge to arbitrage opportunities on current markets tends to be transaction costs for moving your coins around between wallets. These frictional costs also need to be accounted for when calculating the potential arbitrage. For example, if there is a $1 price discrepancy between two exchanges but it will cost $1.20 to exercise that arbitrage, then this is not a true arbitrage.