How to do arbitrage on Bisq - Revision history

Flix21: /* Payment Method Arbitrage */

2025-12-04T12:50:49Z

Payment Method Arbitrage

Flix21: /* Inter-Exchange Arbitrage */

2025-12-04T12:48:36Z

Inter-Exchange Arbitrage

Flix21: /* Inter-Exchange Arbitrage */

2025-12-04T12:47:51Z

Inter-Exchange Arbitrage

Strayorigin: Cleanup & expand page: Add structure/TOC, context notes, correct example, add risk section, update examples & links.

2025-04-22T23:56:47Z

Cleanup & expand page: Add structure/TOC, context notes, correct example, add risk section, update examples & links.

Flix21 at 11:50, 17 March 2022

2022-03-17T11:50:13Z

Flix21 at 11:49, 17 March 2022

2022-03-17T11:49:25Z

Flix21 at 11:40, 24 February 2022

2022-02-24T11:40:41Z

Flix21 at 11:26, 24 February 2022

2022-02-24T11:26:21Z

Flix21 at 11:25, 24 February 2022

2022-02-24T11:25:38Z

Flix21 at 11:24, 24 February 2022

2022-02-24T11:24:58Z

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 '''Example:'''
-# You see offers available to '''BUY''' Bitcoin using [[SEPA]] priced relatively low (e.g., at €85,200).
+# You see offers available to '''BUY''' Bitcoin using [[SEPA]] priced relatively low (e.g., at €85,000).
-# At the same time, you see offers available to '''SELL''' Bitcoin receiving payment via Revolut priced higher (e.g., at €85,800).
+# At the same time, you see offers available to '''SELL''' Bitcoin receiving payment via Revolut priced higher (e.g., at €86,000).
-# You simultaneously execute both: '''BUY''' 1 BTC using [[SEPA]] for €85,200 and '''SELL''' 1 BTC receiving Revolut for €85,800.
+# You simultaneously execute both: '''BUY''' 1 BTC using [[SEPA]] for €85,000 and '''SELL''' 1 BTC receiving Revolut for €86,000.
-# This yields a potential profit of '''€600''' per BTC arbitraged between the two payment methods on Bisq, '''before''' accounting for fees.
+# This yields a potential profit of '''€1000''' per BTC arbitraged between the two payment methods on Bisq, '''before''' accounting for fees.
 # Repeat as long as the profitable spread exists.

@@ Line 18: / Line 18: @@
 '''Example:'''
-# You observe that the lowest price to '''SELL''' Bitcoin on Bisq's EUR/BTC market is currently '''€85,500'''.
+# You observe that the lowest price to '''SELL''' Bitcoin on Bisq's EUR/BTC market is currently '''€86,000'''.
 # Simultaneously, you find you can '''BUY''' Bitcoin on Market X (e.g., a centralized exchange) for '''€85,000'''.
-# You execute both trades at roughly the same time: '''Buy''' 1 BTC on Market X for €85,000 and '''Sell''' 1 BTC on Bisq for €85,500.
+# You execute both trades at roughly the same time: '''Buy''' 1 BTC on Market X for €85,000 and '''Sell''' 1 BTC on Bisq for €86,000.
-# Assuming successful execution, this yields a potential profit of '''€500''' per BTC, '''before''' accounting for any fees (trading, withdrawal, mining, payment method).
+# Assuming successful execution, this yields a potential profit of '''€1000''' per BTC, '''before''' accounting for any fees (trading, withdrawal, mining, payment method).
 (The reverse is also possible: buying cheaper on Bisq and selling higher elsewhere).

@@ Line 19: / Line 19: @@
 '''Example:'''
 # You observe that the lowest price to '''SELL''' Bitcoin on Bisq's EUR/BTC market is currently '''€85,500'''.
-# Simultaneously, you find you can '''BUY''' Bitcoin on Market X (e.g., a centralized exchange) for '''€85,100'''.
+# Simultaneously, you find you can '''BUY''' Bitcoin on Market X (e.g., a centralized exchange) for '''€85,000'''.
-# You execute both trades at roughly the same time: '''Buy''' 1 BTC on Market X for €85,100 and '''Sell''' 1 BTC on Bisq for €85,500.
+# You execute both trades at roughly the same time: '''Buy''' 1 BTC on Market X for €85,000 and '''Sell''' 1 BTC on Bisq for €85,500.
-# Assuming successful execution, this yields a potential profit of '''€400''' per BTC, '''before''' accounting for any fees (trading, withdrawal, mining, payment method).
+# Assuming successful execution, this yields a potential profit of '''€500''' per BTC, '''before''' accounting for any fees (trading, withdrawal, mining, payment method).
 (The reverse is also possible: buying cheaper on Bisq and selling higher elsewhere).

@@ Line 1: / Line 1: @@
-'''Arbitrage''' is the simultaneous purchase and sale of the same asset in different markets in order to profit from differences in price. Inefficient or illiquid markets have many arbitrage opportunities. By reducing these inefficiencies arbitrageurs profit, but also help improve price efficiency and market liquidity. It is a very necessary role in financial markets.
+'''Arbitrage''' is the practice of simultaneously buying and selling an asset in different markets (or in different forms within the same market) to profit from a temporary price difference. In inefficient or less liquid markets, like many peer-to-peer environments, arbitrage opportunities can arise more frequently.
-Bisq is an inefficient market at the moment and provides many arbitrage opportunities. P2P markets generally need arbitrageurs to do what centralized markets do with a trade-matching engine.
+[[How to be a market maker on Bisq|Arbitrageurs]] play a necessary role by taking advantage of these inefficiencies. In doing so, they not only profit but also help improve market liquidity and price discovery, making the market more efficient for everyone. Bisq currently provides many arbitrage opportunities.
-Here is an example of how you can profit:
+{{Admonition_Note|'''Version Context:''' The examples and considerations on this page primarily relate to arbitrage involving the classic '''[[Bisq 1|Bisq v1]]''' trading protocol. Arbitrage mechanics may differ significantly with the newer '''[[Bisq 2|Bisq Easy]]''' protocol (detailed on the [[Bisq 2]] page), which is not the focus of this guide.}}
-. You find that the best offer to BUY Bitcoin on Bisq EUR/BTC is priced 105.
+{{Admonition_Warn|'''Disclaimer:''' The price examples below are purely illustrative using hypothetical market conditions (approx. €80,000-€90,000 BTC/EUR) and plausible spreads. Real prices and spreads fluctuate constantly. Successful arbitrage requires accounting for all fees (trading, mining, payment method) and risks.}}
-. You find another market where you can BUY Bitcoin for 100.
+__TOC__
-. You buy at 100 at market X and simultaneously sell on Bisq for 105.
+== Types of Arbitrage on Bisq ==
-. You will have made a profit of 5 with very little risk.
+You can perform two main types of arbitrage involving Bisq:
-The above is an example of '''inter-exchange arbitrage'''.
+=== Inter-Exchange Arbitrage ===
-You can also do '''intra-exchange''' arbitrage on Bisq. For example:
+'''Example:'''
-. You find that the Bitcoin price on Bisq USD/BTC market is higher than on Bisq EUR/BTC.
+(The reverse is also possible: buying cheaper on Bisq and selling higher elsewhere).
-. You simultaneously SELL BTC for USD and BUY BTC for EUR.
+=== Intra-Exchange Arbitrage ===
-. Repeat step 2 until the profit opportunity disappears.
+This involves exploiting price differences *within* the Bisq platform itself. This can happen between different currency markets or different payment methods within the same currency market.
-Another example of '''intra-exchange'''  is between different payment methods.
+If the implied cross-rate between two fiat currencies (e.g., USD and EUR) differs from the prevailing market rate, an opportunity might exist.
-. You see that available offers to BUY Bitcoin paying with SEPA have a lower price than offers to SELL Bitcoin paying with Revolut.
+'''Example:'''
-. You simultaneously BUY BTC for 100  with SEPA and SELL BTC for 105 with Revolut.
+==== Payment Method Arbitrage ====
-. Repeat step 2 until the profit opportunity disappears.
+Different payment methods within the same currency market (e.g., EUR) might have different prices due to varying user preferences, risks, or settlement times associated with those methods.
 *For more short guides see [[Howto]]. You can also find support on '''[https://bisq.chat Matrix]'''.

← Older revision		Revision as of 11:50, 17 March 2022
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	3. Repeat step 2 until the profit opportunity disappears.		3. Repeat step 2 until the profit opportunity disappears.
		+

	Another example of '''intra-exchange''' is between different payment methods.		Another example of '''intra-exchange''' is between different payment methods.

← Older revision		Revision as of 11:49, 17 March 2022
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	3. Repeat step 2 until the profit opportunity disappears.		3. Repeat step 2 until the profit opportunity disappears.

		+	Another example of '''intra-exchange''' is between different payment methods.
		+
		+	1. You see that available offers to BUY Bitcoin paying with SEPA have a lower price than offers to SELL Bitcoin paying with Revolut.
		+
		+	2. You simultaneously BUY BTC for 100 with SEPA and SELL BTC for 105 with Revolut.
		+
		+	3. Repeat step 2 until the profit opportunity disappears.


	*For more short guides see [[Howto]]. You can also find support on '''[https://bisq.chat Matrix]'''.		*For more short guides see [[Howto]]. You can also find support on '''[https://bisq.chat Matrix]'''.

← Older revision		Revision as of 11:24, 24 February 2022
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	3. Repeat step 2 until the profit opportunity disappears.		3. Repeat step 2 until the profit opportunity disappears.
		+
		+
		+
		+	*For more short guides see [[Howto]]. You can also find support on '''[https://bisq.chat Matrix]'''.