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Title: Exchanges differences - huge spreads, how that works? Post by: ZackP on April 13, 2013, 02:31:18 AM Hi there,
We are to quote equipment we sell in Bitcoins. In order to make up realistic pricing we are looking to follow average of 3-4 exchanges rates. There I got lost. Comparing exchange rates of Canadian and US exchanges values differ by as much as 30%. Same crazy numbers go for spread between by and sell rates. For example we'll buy your Bitcoins for $78 and sell it for $109!? Either factor is giving me a headache. What is real here and what fake? If have part that sells for U$100 how on earth I will determine how much is that in Bicoins? Prices will differ wildly. As for spread within same exchange, I understand that "house" has to earn money on transactions, but here we are talking about 30 or more percent making sell/buy spread something like $145/$92? I mean WTF? It is obvious that each exchange is running it's own show with no much correlation to next one. It looks like it is "take or leave it" mentality at work. Can anybody explain above? ??? Title: Re: Exchanges differences - huge spreads, how that works? Post by: BitFollower on April 13, 2013, 10:18:56 PM Good discussion on this here re: how Bitpay handles it:
https://bitcointalk.org/index.php?topic=160515.0 Title: Re: Exchanges differences - huge spreads, how that works? Post by: DeathAndTaxes on April 13, 2013, 10:23:00 PM Please show me two exchanges with a price difference of 30%.
If it existed you wouldn't even need to sell a product. Just buy x coins on the exchange with lower price and simultaneously sell x coins on the exchange with the higher price. You raise the price on the lower price exchange, lower the price on the higher price exchange, help reduce the spread and collect an instant 30% profit. |