Why different exchange markets have different prices - page 3.

el kaka22

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www.Crypto.Games: Multiple coins, multiple games

Quote from: Bushuqa on March 17, 2017, 03:48:59 AM

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?

Yes, you are most welcome to do so and you can make instant profits by doing this type trading across exchanges. This type of trading is termed as arbitrage trading and people are loving to do this as it will not involve risks as you can make profits by just making buy and sell in quick times (no waiting in between buy and sell).

Quote from: Bushuqa on March 17, 2017, 03:48:59 AM

The reversed is still true, why would anyone buy on cex since the bitcoin is way cheaper on other markets?

Bitcoin prices are being determined when people buy/sell it. When one exchange is very much concerned about verification and accommodations, it will have very less volume and hence prices will be moving slowly. That must be the reason cex prices are lagging. You can buy from any exchange where prices are comparatively low.

calkob

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Quote from: Bushuqa on March 17, 2017, 03:48:59 AM

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?

It all comes down to supply and demand on different exchanges. what people are willing to sell it for and what people are willing to buy it for is what dictates the price. Wink

Bushuqa

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i tottally get the second part of your message, but i am not sure why it would not be profitable to switch markets
For example moving bitcoin from 1 wallet to other is free, then selling for 1135 sounds way better then for 1070 and buying the same in opposite dirrection.
What do you mean exactly by not being profitable? That is the part i did not fully understood.
Maybe a short mathematical example would help

Quartx

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Becoming legend, but I took merit to the knee :(

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.

Bushuqa

newbie

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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?

Topic: Why different exchange markets have different prices - page 3. (Read 6616 times)