Quote from: subSTRATA on June 04, 2015, 07:37:59 PM

Quote from: sherbyspark on June 04, 2015, 07:22:29 PM

Quote from: BTC786 on June 04, 2015, 07:06:35 PM

Does anyone knows Bitcoin Arbitrage?

How does it works?

Please explain

Bitcoin Arbitrage is taking advantage of the price different between 2 exchanges. Say if exchange 1 has buy orders for 100$. And Exchange 2 has sell orders for 99$. Then you would buy from E2 and sell at E1. For every bitcoin you will get that 1$ extra, which is arbitrage.

For discussions regarding arbitrage found this thread : https://bitcointalk.org/index.php?topic=528691.0 .

yup. you should also keep in mind that arbitrage in terms of anything; exchanges, bookies, etc, is only very profitable if a large amount of capital is used as the percent variance is very small. in the most ideal cases you would only be seeing 2-3% profit.

If it is 2-3% profitable, it is 2-3% profitable, the amount of capital used is irrelevant.
If people want to trade their 0.5BTC to make 0.0002BTC, that is still guaranteed profit, there is not need to have too much capital.

Often the amounts that can be traded at the ARB price are also very limited, so again, capital wouldn't help.