Hi, im just got into the whole topic of arbitrage trading 2 days ago. The last 24 hours i have done a lot of research but its way harder than i thought to actually execute proper arbitrage trades. Then i remembered hearing about arbitraging in different regions/markets (for example europe and korean or indian markets) as the rates are can be very different. I start with indian exchanges and found WazirX, Bitbns and CoinDCX. For the first test i looked at ICP. Here my (theoretical) maths without!! looking at trading or withdrawal/deposit fees. For the example i use 1000 USD:
My trading path:
- On Binance, buy 1000 USD worth of ICP for 19,45 USD each = 51,41 ICP
- Send it to WazirX and sell it for 78.771,94 INR what equals 1054,73 USD
- Then i have 78771,94 INR that i somehow have to convert to USD or anything else that i can actually use.
I thought: Great this should work fine. But now the weird part:
WazirX has the pair ICP/INR as well as ICP/USDT. The prices in this exact second (they do not match the prices of my example above, that happened about 24 hours earlier):
- ICP/INR = 1585,90 INR what equals 21,23 USD
- ICP/USDT = 19,88 USDT
So what am i missing here? How is the difference between the two pairs so big? So in this case i would have to sell the ICP. So i did the same math with BNB and came to the same result. WazirX INR prices are way higher than the equivalent USDT pairs.
- Binance: 1 BNB = 399,40 USDT = 29.828,95 INR
- WazirX: 1 BNB = 31.466,18 euqal to 421,32 USDT
- BitBns: 1 BNB = 31.748,17 INR euqal to 423,10 USDT
- CoinDCX: 1 BNB = 31.400 INR euqal to 420,44 USDT
I still cant believe that this is correct and i feel like i am missing something. Otherwise this would be arbitrage heaven. Please someone wake me up and tell me where i went wrong with my thoughts.
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