Bitcoin Forum

stupid question, probably. On YoBit, sometimes there is a small difference between the 'buy' and the 'sell' price, and sometimes there is a huge diff between them.

I don't understand what drives the difference between the 'buy' and the 'sell' price.  I can see the sell orders, and when one of them is used up, the price increases a little bit. Why don't the buy orders match? ie if the buy price goes up by 2 sats, why doesn't the sell price goes up 2 sats?

trading for dummies 101?

This is not a simple question.

I tend to find, This is about demand and volume.

In the very liquid markets like BTC->LTC the buy(bid) and sell(ask) prices are very close and orders tend to get satisfied quickly.
When you have a fringe altcoin, lets say BTC->CUBE, that has little volume and the difference between bid and ask, Spread, tends to be higher.

I think demand has more to do with it because bid and ask are set by people so it is what they are willing to trade for.
If you really want something you will pay more and potentially meet someone asking price.

Not really a good/complete answer but it is a start.

i also have this question in my mind i was curious to know

A part of that difference is a fee that the exchange platform gets.

In every currency market there is a difference between "buy" and "sell" price.

Usually the "Sell" price is higher because of that fee.

I am pretty sure the fee is not factored into the price.
It gets deducted from the amount you are willing to trade, so if you commit .01 BTC to a trade and the fee is .2%, then you actually buy .00998 worth.
Now that is not to say when people set their buy or sell price they do not consider the fee and set a slightly different price.
I agree with the premise of the comment and that is "Pay attention to the fees"

The fee is the same in all cases - 2%. It doesn't make up the difference between some coins. Coin A buy is .000035, sell is .000033; Coin B buy is .0000035, sell is .000012

I can see that this may be because Coin B is almost dead - supply and demand. I'm just trying to learn.

On Yobit, most fees are 0.2%, not 2%, but they do set them by currency.  Some exchanges have the same fees across all currencies.

I agree a large spread could indicate a dead coin or at least dead on that exchange.  Other exchanges the spread might be small with lots of volume.
And if the coin isn't currently dead, a large spread will certainly not help, since it means orders are not getting satisfied, which means volume will be low.

https://coinmarketcap.com (https://coinmarketcap.com) is a good site to get an idea as to where a coin is being traded.

The buy and sell prices are completely independent because some people are offering a price to sell their bitcoins while other people are offering a price to buy. There can be a big or small gap between the two but there are also many sellers above the low sell price and many buyers below the top buy price. They will never overlap because when a sell price and buy price are the same, a transaction can occur.

buying a coins  or a stock has different value with selling  cause its because of supply and demand

Yeah, there is a difference in the 'buy' and 'sell' on yobit and all other exchanges also,

the difference is because of the demand of buyers and sellers,

when a buyer do not want to buy bitcoin on the currenct buy rate then he manipulate the price of bitcoin at there and so a demand is created which is viewable in the sell area, so when ever someone sell on that price which you demanded to get the coins at that instant,

and when a seller do not want to sell his coins on the current sell rate of the exhange then he manipulate the price of bitcoin at that area and so a demand is created which is viewable at the buy area, so whenever a person buy bitcoin at that price your coins are sold.

The buy and sell price is everytime different not only in bitcoin but in all currencies, stock market etc. If the buy price and sell price matches then it will be sold/bought (the transactions will happen) and the difference will still appear if the sell order or buy order is greater.

BTC's price have 100$ different from any exchange to OKCOIN.COM,when you sell BTC for 750$ each,you can sell 850$ on okcoin.com,you just need to coin on local exchange,then send your coin to okcoin and sell it on CFD of september.if you think it's usefull,follow my referal link:https://www.okcoin.com/?invid=2041092

Well its really very nice question. The difference between the 'buy' and the 'sell' price is Spread. Its not only happening with yobit it does happen with all money market. Most of the time spread are normal but when important news comes suddenly it increase and also happened this when off market hours start, like when market are changes Asian sessions to London or NY sessions.

Wow that is a great question i always see that difference but i don't know what is the purpose of that. Now, im curious too so we need to wait for some expert to answer your question and clear my confusions.

Thats not what the Op is asking about. This(your post) is what is called as arbitrage , that is seeing different prices on different exchanges, then buying at one and selling at the other. However not much profitable.

@Op, I believe what you mean is the Spread like whodaddy said. Say If there are 2 buyers and 2 sellers. Sellers wants 100$ for 1 btc, but the buyer 1 wants to pay only 98$ for the buy order. And buyer 2, wants to pay 95$. So the difference between buy and sell is 2$(100-98). Now if the buyer 1, decides to just buy it at 100, and buys from seller 1. So buyer1's order gets filled. Leaving new buy price at 95. Now say seller 1 has 2 more btc left at 100$, so now the spread will increase to 5$ and is the difference that you see when buying/selling.

And the "buy" price is called Bid, while the "sell" price is called Ask. The difference between the closest bid and ask (spread) in the orderbook depends mainly on the liquidity of the traded pair, i.e. how many buyers and sellers are in the market willing to buy and sell at the moment. There is a competition between both buyers and sellers over whose order gets filled first...

This competition drives the spread narrower

It is because of the demand of the people when you want to sell your coins at higher price then your coins are not sold instantly on yobit but they are marked as buy price at the other side of the exchange where people buy coins.

Owww. now i understand thanks for the info and ideas that you brought here now it clears my confusion for that buy and sell difference in price :D.

No, the difference in the price of buy and sell on yobit exchange is not because of the fee they charge but it is because people who want to sell their coins at higher and want to buy from other people at lower price.

They have only small difference because they want to buy the altcoin that theyve wanted to buy as soon as possible, but if the difference of it is almost half the price of selling price they only want to buy to try the altcoin and they dont sure about the price of it. It will dump anytime so they set at half price.

The fees is 0.2 percent on yobit, and the other point is that the difference is not because one of the coin is dead but it is because people want to buy them on that price and there are some people who want to buy at lower price.

So people pump a coin to increase the buy price- what do we do to increase the sell price?

The exchange relies on the # of buy orders that come in, to promote different emotions to people.

Most can relate to fear because its what we fear on missing out on - so hence people jumping on last minute which can push the price increase further.

Thats basically all youre looking for and being aware of these situations as a trader.

Emotion in trading = potentially bad decision.

The difference between the bid and ask is called the spread and they are there to stimulate a free market.
  (What is someone willing to buy the coin for is the bid, what someone is willing to sell the coin for is the ask.)
  (The order book, all those lines under each side of the trading screen, shows the supply(ask) and demand (bid).)

Why is there a big, or small, spread? What will the spread be tomorrow? How high will it go? These are called speculation (I.E. how to make the best possible guess)
For me trading is all about the numbers, I concentrate on those, they are exact, they are real and they never lie.

The mechanics of trading coin is not very different from trading stocks, there are lots of resources on stock trading so don't forget to include those in your research.

meaning all exchange platform gets their profit in every the transaction fee, then no more...??

Generally it is the demand and supply that drives the price. But sometimes it also depend upon the need of the buyer or seller. If the need is urgent than buyer will buy at high price and seller will sell at low price as well.

In general that is correct.
The publicly stated way the exchanges make coin are through 2 fees, a per trade fee, for yobit that is generally 0.2%, and a withdraw fee, which usually varies by coin.
If you leave your coin in the exchange and just retrade or hold them, you do not incur a withdraw fee.
Each exchange has a little different policy and fee structure that you should take into account when using it.

Now I can tell you there are horror stories about what some exchanges are really doing with our coin. (Search on MtGox and Cyrptsy)
  The lesson learned form this stories...You should not hold all of your coin in any one exchange.

the buyers are waiting for the price to do down to their level and than they will buy it.. but if the price keep going up eventually some buyers will pay more and the price will continue to climb

actually selling has a higher fee or a fee because thats where they get funds and that is the way how they get income on trading ..Im reffering to the trading site

If I have understood this question right, you mean that buy price and sell price movements have a difference and they do not move with a particular relation.

Then I would like to share my two cents as I am trading on yobit since last few months. See buy orders or sell orders are not created by yobit, those are created by traders.  

If there are two traders A & B and they are creating buy and sell orders, they can set any price they wish for example,

A can set Sell order at 1,000 Sat and B wants that coin but at a lower price then B creates Buy order on the same coin at 800 Sat.

If you have that coin then you will see B’s order at 800 Sat if you are looking to sell and if you want to buy more coins then you will see A’s order at 1,000 Sat.

I hope it will make the picture clear for you, good luck.