Impossible to lay arbs on a btc exchange

[Sagan]

Sorry for the newb question as I am new to arbing and bit coin.

It seems to be impossible if not really really annoying to lay arbs on a btc exchange like fairlay after placing a back bet on a soft book in a different currency say eur.

The margin on arbs are usually only a few % points and the btc price is so volatile that you risk losing those points when you sell the btc back. Unless you withdraw the funds after every bet and sell them which would be really annoying and would still involve some risks of volatility.

Is this obvious to everyone or am I just missing something?

[Optional]

If both sides of the arb are in bitcoin then it still works. You increase your bitcoin. So it's not impossible to arb.

But yes, if trading cross currency you may lose or gain value as the prices of both move.

[Sagan]

Thanks optional. But to me an arb is a risk free investment by definition. Even if both sides of the arb are in btc and you gain 3% on the back and lay it seems there is still currency risk. For example if btc has dropped 5% since you bought it, then you lost 2% plus the time and effort that went into the arb.

Perhaps it can be seen as an arb/investment in bitcoin but that would not be a true arb in my mind. Even if one were to withdraw right after the arb and sell it they would probably incur higher withdrawal costs which would negate a lot of the profit.

[littlekona]

Thanks optional. But to me an arb is a risk free investment by definition. Even if both sides of the arb are in btc and you gain 3% on the back and lay it seems there is still currency risk. For example if btc has dropped 5% since you bought it, then you lost 2% plus the time and effort that went into the arb.

Perhaps it can be seen as an arb/investment in bitcoin but that would not be a true arb in my mind. Even if one were to withdraw right after the arb and sell it they would probably incur higher withdrawal costs which would negate a lot of the profit.

i think btc has stabilized a bit and probably trends upward slowly..but you are right never know for sure....I like fairlay a lot for straight bets on sports as odds are great w zero commission ...betfair(I use 9wickets) and matchbook also have very good odds very comparable to fairlay....both are very good and pleanty of liquidity...have you tried them too? I use Asian connect to access they convert btc to euro

[Optional]

Thanks optional. But to me an arb is a risk free investment by definition. Even if both sides of the arb are in btc and you gain 3% on the back and lay it seems there is still currency risk. For example if btc has dropped 5% since you bought it, then you lost 2% plus the time and effort that went into the arb.

Perhaps it can be seen as an arb/investment in bitcoin but that would not be a true arb in my mind. Even if one were to withdraw right after the arb and sell it they would probably incur higher withdrawal costs which would negate a lot of the profit.

Oh I agree you need to look at your bottom line. But so does anyone doing any sort of international commerce or cross currency trade.

The reason you mix the two things together in your mind is probably due to USA having been the major base currency world wide during our lifetimes. Coming from outside it's normal to deal with these sort of things. Bitcoin is volatile, but if you compare the USD/Bitcoin rate to the USD/AUssieDollar rate you might be surprised how much regular currencies move about in reality. And it's the US$ that drives a lot of that fiat volatility.