Topic: Why different exchange markets have different prices (Read 6616 times)
The fact that withdrawal fees, late deposit on requested exchange when the price stabilises and the associated trading fees are some factors hindering me from arbitrage trading. Maybe I'll try it out with little cash
Because the volume of cryptocurrency market still small compare others market like stock or forex, and that why exchange have different price. And also the demand in each exchange also different, small volume also will become the price less in liquidity.
say.. BTC is $1070(sell) on poloniex and $1135(sell) on cex.io why would anyone sell his bitcoin on poloniex at the moment and not transfer them to cex and sell them in there?
The reversed is still true, why would anyone buy on cex since the bitcoin is way cheaper on other markets?
this way and used by large players, called it arbitrage, a simple investor is not profitable to do this you need to have a lot of money on each exchange. And with the arbitrage traded mostly robots! Here's the link for comparing prices: http://www.arbitrage.expert/ The reversed is still true, why would anyone buy on cex since the bitcoin is way cheaper on other markets?
Hi,
I noticed that there are some huge differences on exchanges for E-coin (ECN) . For example : it's worth 90 $ on Yobit, 160$ on coin exchange and 7 $ on c-cex. I get it that there might be slight differences, but this huge ?!?!
Also, did any of you guys trade on any of those 3 exchanges? which would be the safest choice ?
I noticed that there are some huge differences on exchanges for E-coin (ECN) . For example : it's worth 90 $ on Yobit, 160$ on coin exchange and 7 $ on c-cex. I get it that there might be slight differences, but this huge ?!?!
Also, did any of you guys trade on any of those 3 exchanges? which would be the safest choice ?
It is because in different market there has different admins and different number of users, and in every crypto market there has a different prices of taxes that they paid ,
thats why there have a different prices in the exchange market.
thats why there have a different prices in the exchange market.
Market price is determine by both buyer and seller, the order that on an exchange is what is being used to set the price, it is not even controlled by the exchange, that is how market works.
I think that a lot of people were doing a lot of arbitrage between the traditional exchanges and the korean exchanges, and they were shut down a few days ago.
Maybe you do not care about this, but this is the root of the thread, the korean exchanges were the first example about expensive exchanges, and the traditional ones, the cheap ones.
Maybe you do not care about this, but this is the root of the thread, the korean exchanges were the first example about expensive exchanges, and the traditional ones, the cheap ones.
Actually that is the thing I observed in different exchange market. I think the reason behind of this thing is the commission that they imposed in each transaction. There are some companies that is too much expensive in terms of its services while others are cheaper.
They're all independent structures and this is normal when you understand they're independent. The price can't follow the same path everywhere because the traders are not the same people everywhere. They're all different traders with different order books.
say.. BTC is $1070(sell) on poloniex and $1135(sell) on cex.io why would anyone sell his bitcoin on poloniex at the moment and not transfer them to cex and sell them in there?
The reversed is still true, why would anyone buy on cex since the bitcoin is way cheaper on other markets?
In each market the number of transactions takes place differently and the amount of money and coins in the exchanges markets is different so prices will vary. in the addition, the price in the exchange are regulated by the trader and depend on the need of buying and selling. The reversed is still true, why would anyone buy on cex since the bitcoin is way cheaper on other markets?
Actually that is the thing I observed in different exchange market. I think the reason behind of this thing is the commission that they imposed in each transaction. There are some companies that is too much expensive in terms of its services while others are cheaper.
I think it's good., just choose an exchanger that's already familiar with you and it has been proven can be trusted and you feel comfortable with it.
And I think for exchangers that are proven can be trusted and already famous, it certainly will be the most updated about the development of the coins prices and in accordance with the facts.
And I think for exchangers that are proven can be trusted and already famous, it certainly will be the most updated about the development of the coins prices and in accordance with the facts.
say.. BTC is $1070(sell) on poloniex and $1135(sell) on cex.io why would anyone sell his bitcoin on poloniex at the moment and not transfer them to cex and sell them in there?
The reversed is still true, why would anyone buy on cex since the bitcoin is way cheaper on other markets?
Because each exchange market has different trader, different people will place different orders so different prices. The difference between the exchange floor is the reason for the price of Altcoin up or down. The reversed is still true, why would anyone buy on cex since the bitcoin is way cheaper on other markets?
Well there are many factors to factor in when it comes to the prices on the different exchanges.
Given the transaction fees + the fees implemented by the different exchanges, it would usually not be profitable to buy at the cheap end and sell at the expensive end. Time is an issue.
In addition, some traders favor specific exchanges as they have a vested interest or holding on there, you also need to take into account, bots, automated traders, and even time zone differences from different countries.
The only thing that is certain that between the major exchanges, the price of btc in usd will usually fluctuate between 1-15% based on many factors, most of which i have listed above.
Given the transaction fees + the fees implemented by the different exchanges, it would usually not be profitable to buy at the cheap end and sell at the expensive end. Time is an issue.
In addition, some traders favor specific exchanges as they have a vested interest or holding on there, you also need to take into account, bots, automated traders, and even time zone differences from different countries.
The only thing that is certain that between the major exchanges, the price of btc in usd will usually fluctuate between 1-15% based on many factors, most of which i have listed above.
In addition there is also the difference in the volume of people who trades. It might be a lot greater on this exchange than the other. So if the demand is greater on this exchange then the price will also increase.
It would be hassle and time consuming if you would buy btc in this exchange and trade it to other exchange. You'll go bankrupt with the price of the transaction fees implemented on each exchange.
It is depend on his website and it's depend domain security, some crypto currency site have a best protection as like bittrex, Binance, Poloniex so this site have a different price and different exchange fees and also depend how many worker stay with this company.
I'm seeing huge price gaps in the same exchange, but different pairs as well, for example in kraken bitcoin price in euros is higher than in USD. This is all due to usd/euro exchange rate or other parameters?
I think the best reason from this why there are different exchange rates in different markets is because of the mark up cost or the commission that they imputed in this rates.
All exchange market companies earn revenues through putting commission in exchange rates. For me this regards the price because the more important is the quality of service they provide in every customer.
All exchange market companies earn revenues through putting commission in exchange rates. For me this regards the price because the more important is the quality of service they provide in every customer.
It’s a very nice thinking and it is a very good question. In this online market there are too many exchange but the take a charge different amount, it’s main resin is site capacity and popularity and some website have too many worker so they accept high fees and his service is very useful.
I think the reason behind why there are some differences in prices between the exchange markets is the commission or additional charge that they impose in all transaction. In this way they can earn revenues that will support all of their expenses and the excess will be their income .
1) Front-running. It used to be rife on the mainstream stock exchanges until they made it illegal.
Front-running is where you know what your client will do next and you trade before him, knowing that his later trade will change the price in your favour.
The exchanges know how much cash their clients hold. They also have power over how long it takes before they credit you with the dollars you just sent to the exchange. They say it takes one to eight days. It should be the same value day. They can credit all clients on a Sunday night, knowing the wave of buying will start on Monday morning.
Once your coins are on the way to the exchange or already arrived its not worth the time or trouble to move them to another exchange.
2) For exactly the same reason as above, most exchanges don't take Tether. If they did, you could instantly arbitrage between exchanges, thus undermining their profits from front-running.
Front-running is where you know what your client will do next and you trade before him, knowing that his later trade will change the price in your favour.
The exchanges know how much cash their clients hold. They also have power over how long it takes before they credit you with the dollars you just sent to the exchange. They say it takes one to eight days. It should be the same value day. They can credit all clients on a Sunday night, knowing the wave of buying will start on Monday morning.
Once your coins are on the way to the exchange or already arrived its not worth the time or trouble to move them to another exchange.
2) For exactly the same reason as above, most exchanges don't take Tether. If they did, you could instantly arbitrage between exchanges, thus undermining their profits from front-running.
This is nothing but mis-pricing of security, in theory of efficient market hypothesis EMH by Eugene Fama, an asset price incorporate all the available information and will be trading at fair value.
In reality, we are not part of perfect market, most of the markets worldwide are semi-strong efficient. What it means is, the new information takes a while to get reflected in the price. whereas in perfect market (strong form of efficiency) stock price reflects as soon as some information is made available.
To link this to your question, it may happen that the investors in different stock exchanges may be not aware of the exact information leading to different pricing of same security in two different markets.
It may also happen that as the prices of a security is derived from actual transactions, availability of buyer and seller also be a reason. A higher liquid market absorbs the information faster than relatively illiquid market.
Happy Investing!!!
In reality, we are not part of perfect market, most of the markets worldwide are semi-strong efficient. What it means is, the new information takes a while to get reflected in the price. whereas in perfect market (strong form of efficiency) stock price reflects as soon as some information is made available.
To link this to your question, it may happen that the investors in different stock exchanges may be not aware of the exact information leading to different pricing of same security in two different markets.
It may also happen that as the prices of a security is derived from actual transactions, availability of buyer and seller also be a reason. A higher liquid market absorbs the information faster than relatively illiquid market.
Happy Investing!!!
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