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Topic: How do exchanges work? - page 3. (Read 574 times)

tyz
legendary
Activity: 3360
Merit: 1533
January 18, 2024, 05:02:11 PM
#3
My question is why is the rate higher on one exchange than on another?

The price is made by supply and demand. If demand on an exchange is greater than supply in the short term, prices can rise more sharply there than on other exchanges and vice versa. However, this is usually only the case in the short term because there are many so-called arbitrage traders who use price differences between exchanges to buy cheaper on one and sell more expensively on the other. As a result, the price usually adjusts quickly across exchanges.
legendary
Activity: 1652
Merit: 1208
Gamble responsibly
January 18, 2024, 04:18:55 PM
#2
The price is displayed based on latest traded trading orders. People are trading on different exchanges and they can not all buy and once and sell at once in a way the prices will be the same access all exchanges.

You can read these to know better:

https://zipmex.com/learn/why-crypto-prices-different-each-exchange/
https://learn.bybit.com/crypto/why-bitcoin-prices-differ-across-exchanges/
newbie
Activity: 1
Merit: 0
January 18, 2024, 03:23:33 PM
#1
My question is why is the rate higher on one exchange than on another?
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