Hello all,
I've been mulling over in my head what the requirements are for inter-exchange arbitrage to affect the price of a particular market.
For example, if you have two exchanges, with the same market structure, both accepting deposits and withdrawals in base and quote currencies, it seems arbitrage is clearly possible, should a pricing discrepancy present itself.
But what happens if the market structure is different between exchanges?
Say, exchange A has a 'standard' LTC/BTC market where you sell 1 BTC and get 0.1 LTC instantly, but exchange B, is a CFD exchange trading LTC/BTC where you go short 1 BTC and then have to close the trade at a later point?
Is arbitrage still possible?
Cheers, Paul.
it has already been discussed millions of times across this forum
arbitrage is no more profitable; ship has already sailed months / year ago
there are now too many bots trading these opportunities, and the spreads are negative
there are too many reasons why the prices differences you think to see on coinmarketcap or whatever support you use, won't work
my advice to you is to stay away from that business for now unless you're ready to suffer losses