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Topic: If it is only buying and selling on exchanges, how do you think they are profita (Read 1885 times)

sr. member
Activity: 280
Merit: 250
in the stock market, a lot of buying and selling currencies of various countries, there is no buying and selling of goods there, how do you think can profit in the stock market?, of course, the gains from the difference between currency sold and bought there, just like bitcoin exchange, hopefully you understand with my explaination ..  Roll Eyes
hero member
Activity: 988
Merit: 1000
Most of the exchanges make money through transaction fees, which can be pretty big.
and even the difference between buying and selling.

you are thinking about service provider, not exchanges...
Some exchanges do use their own money to trade bitcoin; it is rumored that chinese exchanges do this a lot. He is however correct to say that exchanges to primarily make their money from trading fees.
sr. member
Activity: 448
Merit: 250
Changing avatars is currently not possible.
Most of the exchanges make money through transaction fees, which can be pretty big.
and even the difference between buying and selling.

you are thinking about service provider, not exchanges...
hero member
Activity: 910
Merit: 1000
Most of the exchanges make money through transaction fees, which can be pretty big.
and even the difference between buying and selling.
member
Activity: 98
Merit: 10
To the best of my knowledge there hasn't been any allegations or report on their trading against customers.
hero member
Activity: 910
Merit: 509
Bitstamp and btc-e are only charging user fee on matched trade.

I have not heard allegation of them trading against their customers.
Yes, you have heard allegations - in the above posts. Of course, these are really just suspicions, but they were presented in a suggesting way.

In a nutshell, exchanges profit from trading fees. They usually do not make much profit off of withdrawals. Some of the exchanges make even more money off of using the information they have at their disposal to their advantage.
full member
Activity: 165
Merit: 100
Bitstamp and btc-e are only charging user fee on matched trade.

I have not heard allegation of them trading against their customers.
full member
Activity: 228
Merit: 100
Notice the price difference between Buy and Sell on exchanges?
These companies are market makers and profit from that bid-ask spread.
Other relevant search terms include algorithmic trading and arbitrage opportunity.
do you mean its shady trading?
sr. member
Activity: 448
Merit: 250
Changing avatars is currently not possible.
Those firms build a huge userbase. That in itself is incredible valuable. Wouldn't wonder if a company like BTCchina is sold for >100 mlillion USD and the buyer introduces fees longterm.
full member
Activity: 141
Merit: 100
Zero fees Chinese exchanges make most of their money by trading against their customers (stop loss farming, front running etc.). If you don't think this is happening in an unregulated Chinese exchange you are insane.
Bingo. Id back that most "reputable" exchanges are involved too. Price fixing and market distortion is too easy and attractive an opportunity to forgo

Brokers that trade against their customers are called bucket shop. People should avoid this kind of exchange as the price they quote you is arbitrary rather than market rate.
DRK
full member
Activity: 128
Merit: 100
Zero fees Chinese exchanges make most of their money by trading against their customers (stop loss farming, front running etc.). If you don't think this is happening in an unregulated Chinese exchange you are insane.
Bingo. Id back that most "reputable" exchanges are involved too. Price fixing and market distortion is too easy and attractive an opportunity to forgo
sr. member
Activity: 518
Merit: 250
Exchanges have fees for every transaction, they get 1% or so. Now 1% of 10.000 is 1000$, so they make money based on that.
Also, some have a withdraw fee
hero member
Activity: 1106
Merit: 500
Life is short, practice empathy in your life
Zero fees Chinese exchanges make most of their money by trading against their customers (stop loss farming, front running etc.). If you don't think this is happening in an unregulated Chinese exchange you are insane.
legendary
Activity: 2590
Merit: 1022
Leading Crypto Sports Betting & Casino Platform
when the alt scene wasn't dying like now, a good profit was coming also from voting
newbie
Activity: 56
Merit: 0
Ads and fees only if they are legit.
hero member
Activity: 988
Merit: 1000
The exchanges profits from fees (deposit,witdraw and trading)
I don't think the deposit/withdraw fees add up to very much and these fees are likely close to the actual costs of doing these functions. The main source of revenues and profits that exchanges have are the trading fees. These can easily add up and many traders will trade into and out of positions several times per day, allowing an exchange to earn their fee on every trade.
legendary
Activity: 3374
Merit: 1824
If they will not have profit, they will not do this business Smiley
They have a few ways to make profit, from their internal fees, from difference in prices when you buy and sell currency, from website ads etc.
full member
Activity: 153
Merit: 100
Withdrawal and/or transaction fees, they will earn from these fees.  Cool
legendary
Activity: 1218
Merit: 1007
In a nutshell: Fees when you buy/trade, and withdraw fees. I have yet to find a place that has a deposit fee.

And yeah, they make a lot of money. Lots of it.
legendary
Activity: 1036
Merit: 1000
The exchanges profits from fees (deposit,witdraw and trading)
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