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RE: STEEM ARBITRAGE OPPORTUNITY REPORT (ISSUE 3), AUGUST 16, 2016
Thanks for your comment. Arbitrage is a low risk strategy, so you can definitely make some money out of it. As I said, I am mainly doing arbitrage in Bitcoins right now. The liquidity of the STEEM market is not that high yet and it is of higher risk, so I have not put money into it yet. For the concern that the more people know it, the opportunities will be diluted, that's true in some sense. But let me say that I am writing this out of my own interest and trying to help the market to be more efficient, which benefits the whole community. But I guess my reports are not that popular yet, and not many people will really do it due to the 7-day wait time of the conversion, so it's mainly for the sake of sharing ideas. :)
Ok. I think it is valiable. In terms of risk, arbitrage is meant to be riskless in essence. But I believe there are operational and technological issues that brings some risks to this strategy.
Yes, this strategy is not completely risk-free. Let's at SBD is $0.9 now. If during the 7-day period of the conversion to STEEM, the price of STEEM drops more than 10%, then you will lose some money.