Difference between two markets

[Tonnie]

So I have an account at Bitstamp and on Gatehub. Just for fun I was checking XRP/EUR price (buying) on these two markets. At any given moment it was 0,188 (bitstamp) and 0,204 (gatehub). In my eyes a huge difference...Two questions:

1. With so much XRP's in play, why are these markets not more the same?

2. With the quick Ripple-network, would it work to make use of this difference?

Yes, I'm still a newbie

[corak]

In principle such pricing can allow you to gain money risk free by making a cycle of transactions between these exchanges.

This is called arbitrage.

i.e. XRP -> gatehub EURs -> Withdraw -> Deposit in Bitstamp -> XRP

however, fiat deposits and withdraws can take a long time to process, and also have fees.

You have to calculate if after fees on all transactions, it is worth doing this.

The XRP ledger can keep track of XRP's, and securitized debt from Bitstamp and Gatehub. But it has no way to actually move Gatehub's deposited fiat into Bitstamp or vice versa.

 

Edited December 10, 2017 by corak

[zenkert]

35 minutes ago, Tonnie said:

So I have an account at Bitstamp and on Gatehub. Just for fun I was checking XRP/EUR price (buying) on these two markets. At any given moment it was 0,188 (bitstamp) and 0,204 (gatehub). In my eyes a huge difference...Two questions:

That is the way it is. Just to accept. Someone with a deeper knowledge can certainly answer more in detail.
I have also noticed even since a started buying XRP and made comparisons with values on different markets.
But I decided to ignore it since it is IMHO nothing to pay attention to.
Unless you are hunting for the Best Market Price.
But that can also lead you into a dead end chasing cents of a cent for nothing. Really.
If you have a lot of XRP´s to play with, it may be worth it.
But not for average Joe XRP trader as me.
It is not worth the time.

Grab a beer and relax is my advice.
 

Edited December 10, 2017 by zenkert

[Tonnie]

Haha, thanx man, just trying to find out how things work!

[pucksterpete]

59 minutes ago, Tonnie said:

Just for fun I was checking XRP/EUR price (buying) on these two markets. At any given moment it was 0,188 (bitstamp) and 0,204 (gatehub). In my eyes a huge difference.

   you found my little money maker market    

 

Edited December 10, 2017 by pucksterpete

[pucksterpete]

31 minutes ago, corak said:

But it has no way to actually move Gatehub's deposited fiat into Bitstamp or vice versa.

your right, No EUR.IOU on Bitstamp, if there was the loop would be complete and no withdraw to a bank would be required

but bitstamp does have a USD.IOU that you can send back n forth between bitstamp & gatehub and there is a the market for it on gatehub xrp/usd

its a cent difference right now   

[corak]

but you can't trade one IOU for another without losing all of the profit. Unless the arbitrage difference starts reversing itself, you will get stuck without funds of one type eventually unless you withdraw and deposit to rebalance it.

[Tonnie]

9 hours ago, pucksterpete said:

   you found my little money maker market    

 

Hey, thanks for the read. How is arbitrage working out for you? And do you now have a bot in play? So, the way I'm looking at it is that I want to have EUR on Bitstamp to buy XRP. Than I transfer XRP to Gatehub and sell XRP. Then take the EUR to my bank. Would that work? I know it would take a few days to have my money transferred from Gatehub to my bankacc, but that's ok, I don't want to do this the whole week, just once a week. I know about the fees...

[pucksterpete]

@Tonnie  No Problem

Well, its doing pretty good when the volume is there         put it this way, I invested in XRP back when the price was 0.004€, I quit my day job and full time trade now in XRP & others.

 I do not use a bot, I wish I did though

You got it man, You can't beat the speed of XRP.

Depending how much XRP your playing with, you could always just leave it on Gatehub ready to sell after you make your buys on bitstamp and once gatehub xrp is low then make the transfer of your xrp on bitstamp to gatehub.

The only delay we have right now is the SEPA transfer times, which isn't too bad.  But missing days when you don't have the funds are missed opportunities to make more cash.

Imagine if all the banks were using Ripples tech, we would be able to get that money back over in no time   

Good luck to you & welcome to the forum 

 

[Tonnie]

Thanx for the info!!

So, how quick is a transfer in XRP from Bitstamp to Gatehub in general? I'm not yet verified on Gatehub, thats why I cannot test i myself. And from wat I read the verification on gatehub wil last a bit

[pucksterpete]

10 minutes ago, Tonnie said:

how quick is a transfer in XRP from Bitstamp to Gatehub in general?

your welcome

seconds

[Tonnie]

Wow, so the story's are true!