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Consider the following scenario,
I have 365 USD in Btc-e and 1 BTC in Cryptsy, now I bought 1 BTC at a price of 362 USD in Btc-e and sell it on Cryptsy with 370 USD, now I made the profit of 4 USD (included txn fee), now the current market price of 1 BTC is 370 USD
Market price I mentioned was 1 BTC = 360 USD
How the market price affect my profit?
Still I have 8 USD profit in Cryptsy or I made a loss/profit with respect to market price?
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If you want to make money on arbitrage like this, you should have reserves on both exchanges, and at the moment when you are buying in btc-e, you should sell at cryptsy (for example). Otherwise te price can change to "wrong" direction when you are transfering bitcoins from btc-e to cryptsy or vice versa. Also, you should understand how to withdraw/deposit fiat to this exchanges fast with minimal expences, that can be the biggest issue especially for btc-e.
Note that both of those exchanges will charge you a fee - usually on the order of a third of a percent. (About 1 USD on each end.) – Nick ODell – 2014-11-28T07:29:18.290
@NickODell, Ok lets take approx profit as 4 USD – M.R – 2014-11-28T07:55:39.697
There is no one market price. Each exchange has it's own. Also you have made 0 profit until you have either the btc in your own wallet or the money on your back. I have a 10x profit on mtgox too. Other than that I don't understand your actual question. – Jannes – 2014-11-28T09:54:25.077
@Jannes, If there is no one market price then how would you know the profit in USD? – M.R – 2014-11-28T10:42:50.790
That's my point. You don't. As long as the USD is not in your bank account it's not USD but rather USD-on-Cryptsy or USD-on-BTCE. Or my USD-on-MtGox... – Jannes – 2014-11-28T12:42:20.583