Why is GDAX literally $100 below every other exchange? Can I just arbitrage by buying $100,000 of BTC on GDAX, withdrawing the BTC, and selling on Gemini for nearly $1,000 profit in a few days?
Why is GDAX literally $100 below every other exchange? Can I just arbitrage by buying $100,000 of BTC on GDAX...
Yes, but your risk is dependent on volatility and theta (time to transfer).
I could transfer (my own) BTC on Gemini now, and the USD on GDAX at the same time.
When both are done, I can post a limit order on GDAX for the trade to be free and hit a market order when it triggers on Gemini
People are dumping Tether on other exchanges leading to higher supply of them
GDAX trades BTC/USD not USDT
its because you are looking at USD value on GDAX and USDT value on other exchanges
USDT = .98 USD right now or less
gemini trades on USD and is $100 higher
why did you call it theta
>Theta is a measure of the rate of decline in the value of an option due to the passage of time.
Habit, I guess.
Huh, I only know theta being the angle desrcribed in trig functions (as do most who read that I assume). Thought you might've been pulling a fedora on me but thanks for the insight, I wonder why theta was the name of choice.
>Can I just arbitrage by buying $100,000 of BTC on GDAX, withdrawing the BTC, and selling on Gemini for nearly $1,000 profit in a few days?
All that to hopefully make 1 percent in a "few days"? In crypto. Wew lad
Risk free though
>GDAX is below market value
>binance is overvalued
do it
If BTC is already part of your portfolio, then sure why not? If there's a $100 difference with BTC @ 10k, then you'd be making a 1% gain every trade btw ya dingus, that adds up quick esp if you can arb multiple trades / day
Why isn't there a bot already doing this
In invested in ARCT in hopes of this being a thing, but still I bet someone could make a killing renting out a bot
I wouldn't be able to, the bank transfer would take several days. It's the fiat that cucks you.
There are bots that do this already, those that have them don't share them, it's like mining, the more people mine the less money you make.
ahh I see, if GDAX accepted tether deposits this would be a different story (or vice versa and more exchanges accepted usd)
Altneratively you could look at arbitraging back with ETH, LTC, BCH etc but I doubt you'd get that lucky. I guess you could set up a notification system that could alert you when a good situation arises to arbitrage once again to GDAX
Yeah I figured, and I understand why one wouldn't share. But I would think someone would rent there's out somehow
I wonder how much programming knowledge it takes to create one you can trust not to lose all your money
If your math works out with all the fees, absolutely. You have a plan. That only works as long as very few people know about it. So you came to the internet and told thousands of people about it.
So, good plan otherwise.
Yeah that assumes the $100 difference is going to remain constant while your coins transfer. That also discounts the opportunity cost of not being able to trade your coins in the meantime. It also discounts the transfer fee and transaction fees. It also doesn't take into account moving your account to a shitty exchange with shittier trading opportunities while you wait to move your coins back. This also neglects the fact that most exchanges won't let you move 100,000 dollars a time and on and on and on. It's a shitty idea for that low percentage, dumbass.
Most of those concerns are minor. Sure, it can backfire if an order is filled before you get there, but still it's relatively low Rowland if you're simply sitting on BTC and able to do so, you should.
>dumbass
I've arbitraged many times though it's usually with LTC between gdax and bittrex. Not sure why the spread gets so out of whack on that coin but it does. In my experience, if there isn't at least a 5% difference it is too much risk and you will eventually lose enough gains on one attempt to wipe out what you made the last 10 go 'rounds. BTC is even worse since the fees are much higher and it takes so much longer. That said, you do you. 5% minimum works for me though.