Quote from: w1R903 on March 22, 2013, 03:48:01 AM

Quote from: maxme on March 20, 2013, 07:12:53 PM

Quote from: DobZombie on March 20, 2013, 06:12:43 PM

Does this bot require 2 exchanges for trading to happen? If yes is it possible to do trades with only 1?

Yes it requires 2 exchanges. Arbitrage means "buy at X on a market and sell at X+y on another market at the same time".

http://en.wikipedia.org/wiki/Arbitrage

No, it certainly doesn't require 2 exchanges. There are thousands of people doing cross-currency arbitrage as we write this. See: http://en.wikipedia.org/wiki/Triangular_arbitrage This can be done in a single exchange.

And cross-currency arbitrage is getting quite popular in exchanges with several virtual and fiat currencies, like vircurex and btc-e.

A market is not synonymous with "an exchange". Each exchange has multiple markets (usually): USD-BTC, EUR-BTC, LTC-BTC, etc.

And of course, spot/futures arbitrage