Arbitrage for Dummies
BitSharesX: BTSX is being sold at 0.21CNY/BTSX
BTER.com: BTSX is being sold at 0.195CNY/BTSX
BTER.com: bitCNY is trading at about a 2.5% discount.
Bot Algorithm:
- Buy bitCNY on BitSharesX below the peg 0.21CNY/BTSX
- Transfer it to BTER.com and trade it for CNY
- Trade CNY for BTSX at 0.195 CNY/BTSX
- Transfer BTSX back to BitSharesX
- Rinse and repeat.
With Feeling Numbers:
- Trade 100 @ .21 CNY/BTSX = 21 bitCNY
- Transfer 21 bitCNY to BTER
- Trade 21 @ 0.975 bitCNY/CNY = 20.475 CNY
- Buy 105 @ .195 CNY/BTSX
- Transfer 105 BTSX back to BitSharesX
- Rinse and Repeat
I get the feeling BM has been telling us to do this for months. Anyway, aside from all the fees between the steps, which would be less than 5 BTSX, this seems reasonable? Since everything would be done by a bot even 0.01% profitability would be good. Even breaking even would be fine if it'd provide some Market X-Laxtm