Dennis Loos | Understanding Arbitrage and its Role in Cryptocurrency
Any time a stock, commodity, or piece of currency can be bought at one price on one market and simultaneously sold at a greater price on another, arbitrage can be used, Dennis Loos. The circumstance offers the trader the chance to benefit without taking any risks. Arbitrage offers a way to ensure that prices stay within fair value over an extended period. Technology improvements have made it very challenging to profit from pricing mistakes in the market.
According to Dennis Loos, many Crypto traders have automated trading programs configured to track changes in similar financial instruments. Any ineffective price structures are typically addressed immediately, frequently within a few seconds, and the opportunity is lost. Take the following as a simple illustration of arbitrage. On the N...