Prices differences between Exchanges

zikabra

full member

Activity: 574

Merit: 139

Quote from: HenkdPee on October 20, 2017, 05:54:37 AM

Is the price of a coin not synced between Exchanges?

No, people are selling and buying where rates are best.

Quote from: HenkdPee on October 20, 2017, 05:54:37 AM

If not, how does this system work? How come that the difference is still small although not synced.

Have you ever heard of arbitrage trading? Google it. Also see my answer above.

Quote from: HenkdPee on October 20, 2017, 05:54:37 AM

And, how do I make sure I trade on the Exchange which is offering the best price?

You have to watch market on each exchange.

maeusi

sr. member

Activity: 462

Merit: 254

Quote from: HenkdPee on October 20, 2017, 06:58:50 AM

Thanks for the answers, so far. But how on earth can it be that these Exchanges end up with almost exact the same prices for coins, where there is nothing implemented (like interfaces) to automatically sync these prices?? How can that be?

The difference is mostly caused on trading volumen at exchangers. Big exchangers like for exampke Poloniex, Bittrex and Bitfinex have on well known cryptocurrencies large trade volumen. If you choose exchangers with low trades or exotic ctyptos the price often changes with one buy/sell order and prices are unstable. But only experienced traders may take profit from arbitrage.

HenkdPee

newbie

Activity: 5

Merit: 0

Thanks for the answers, so far. But how on earth can it be that these Exchanges end up with almost exact the same prices for coins, where there is nothing implemented (like interfaces) to automatically sync these prices?? How can that be?

n4poleon

full member

Activity: 252

Merit: 100

You're a noobie but you're on the right path, asking more relevant questions. Well, this is normal this is how you see that orders are different. You can compare prices at the coinmarketcap list. And when price difference are high, you can do arbitrage trading. But this rarely happen and when it happens it is very short lived.

Mallyx

hero member

Activity: 1138

Merit: 574

Quote from: HenkdPee on October 20, 2017, 05:54:37 AM

Hi All!

I have notices that a (random) coin can have a different price depending the Exchange it is traded on.
Take, for example, XRP. It is traded on a number of exchanges and the price is different per exchange. The difference is small, but still it's a difference.

Is the price of a coin not synced between Exchanges?
If not, how does this system work? How come that the difference is still small although not synced. And, how do I make sure I trade on the Exchange which is offering the best price?

Maybe stupid questions but would like to understand how this works.

Cheers!

Arbitrage happen between exchange only if it's profitable.

If you buy lower on an exchange to sell higher on an other, you must be sure that the withdraw fee + trading fee are good to make a profit. Else it's not interesting.

It's one of the reasons you can have a small difference between exchanges.

javadsalehi

member

Activity: 364

Merit: 13

As the prices are determined by buyers and sellers these small differences are normal. But always prices on exchanges are going to be same. If you want to buy a coin at best price you should check all the exchanges simultanoeusly and should have bitcoin in all of them. Because the prices will change after your bitcoin transaction is confirmed.

HenkdPee

newbie

Activity: 5

Merit: 0

Hi All!

I have notices that a (random) coin can have a different price depending the Exchange it is traded on.
Take, for example, XRP. It is traded on a number of exchanges and the price is different per exchange. The difference is small, but still it's a difference.

Is the price of a coin not synced between Exchanges?
If not, how does this system work? How come that the difference is still small although not synced. And, how do I make sure I trade on the Exchange which is offering the best price?

Maybe stupid questions but would like to understand how this works.

Cheers!

Topic: Prices differences between Exchanges (Read 218 times)