New answers tagged

0

The name is arbitrage. Yes, if an opportunity exists, you can do it. However, the very act of doing it will destroy the opportunity for anyone else to do it. Arbitrage has this nasty habit of causing equilibrium between markets. So you are essentially in a race with anyone else who is trying to do this as well to be the first. It is a very hard way to make ...


2

A while back there was a situation where one crypto exchange had a price per bitcoin that was quite a bit higher than all the other crypto exchanges. One could in theory sell bitcoin on that exchange, withdraw the dollars, move them to another crypto exchange, buy bitcoin, transfer the bitcoin to the original exchange and repeat. There were a couple of ...


9

About the time when the Euro was introduced, one major store in the UK accepted Euro for payment (they don't do that anymore), and returned your change in pound. Unfortunately for them, they had confused the exchange rate. Instead of say £1.00 = €1.20, they applied a rate of €1.00 = £1.20. So you took 100 euros, bought five pound worth of items, they ...


9

There are two ways to do this: One is to find "instant" cycles of currency pairs which are not completely equivalent and result in a higher amount after conversion, as explained in the other answers. As they state, the issue is that you're far from the first one to think about it, and the market tends to self-correct, so the window to do it is ...


21

One of my teachers (established engineer doing his Ph.D. in older age teaching us) at the university made a solid amount of money designing special hardware, one of the uses of which was to trade on exchanges and make money precisely the way you describe. The problem for small players? There are big players with: specialized hardware (made to specification ...


1

If prices are allowed to float, then the market will sort itself out. That's even more true if you allow your money to be subdivided - if you can give somebody a fraction of a token. Suppose you give everybody one token. Somebody wants some help, and needs to decide how much to offer. They think 10% of their money is about right and will therefore offer 0....


54

An example should be something like this: $10 ⟶ ¥10000 ⟶ €5 ⟶ $12 (profit) This is called triangular arbitrage. The concept is simple and well-known. The process is not risk-free. There are many potential execution pitfalls. Even if you manage to identify a profitable cycle, the prices could change before you manage to complete the cycle. Your example ...


67

I recently got this idea from ... You're not the first. (Or the 8000th.) Is there a word for it? Arbitrage (pronounced in French) is "the simultaneous purchase and sale of the same asset in different markets in order to profit from tiny differences in the asset's listed price. It exploits short-lived variations in the price of identical or similar ...


1

A system like this is about give and take. The amount of "money" each person starts with is essentially the number of "takes" each person can do before they have to "give". Let's say you trade homework helps, and each help costs a doubloon (or whatever you call your currency). If each person starts with five doubloons then they ...


2

I’ll assume that the teachers are fine with the system you’ve set up. Otherwise, plagiarism software would quickly put you out of business. The way to create a market system is to base it on trade: equal value of items exchanged. You can start by assigning a monetary value to items contributed. You might allocate 1 credit for each piece of information ...


Top 50 recent answers are included