Is there a reason why the price on BTC-E is so much lower than the other exchanges? It's currently trading at $1018 while Bitstamp is $1054. The Chinese exchanges are even higher. Couldn't someone just buy on BTC-E and sell on Bitstamp? I'm assuming I'm missing something so if someone could explain this to me it would be much appreciated!
I am not completely sure about the reason why there is such a big difference and I also have noticed it before. maybe lack of volume?!
but also no it is not possible to do arbitrage trading with btc-e and other exchanges such as bitstamp because the fiat deposit and withdrawals are extremely expensive there. you can check out their page on fees for more information
https://btc-e.com/fees and that always makes it non profitable with this much difference.