Why exchanges have almost the same price?

[papajamba]

I trade on poloniex and bittrex and I've noticed that prices are very similar and not far off.
Is this just coincidental? or do they share prices? or that traders behave the same?

[bathrobehero]

Arbitrage.

Difference in prices between exchanges can be used to turn a profit; buy on the exchange where stuff is cheaper and sell them on another where prices are higher.

So it's caused by traders (and bots).

[Marma Kalari]

Arbitrage.
Difference in prices between exchanges can be used to turn a profit; buy on the exchange where stuff is cheaper and sell them on another where prices are higher.
So it's caused by traders (and bots).

I think bots play a major role here,earlier we used to get the price difference and will have the chance to do arbitrage,but now a days it is really impossible,one thing is that the amount of time it takes to send coins to one exchange to the other and the other issue is bots are playing a major role here.

[chohav]

I trade on poloniex and bittrex and I've noticed that prices are very similar and not far off.
Is this just coincidental? or do they share prices? or that traders behave the same?

The price on the exchanges "should" be determined only by the law of supply and demand, so really close prices are something normal.

[Bitkonj]

Sometimes a specific exchange (market) has factored in a premium, depending on trust of local (fiat) currency and other things. For more info, check out @aantonop:
https://www.youtube.com/watch?v=B4tsk-ZiHuE

[slaman29]

If you really want to see if this is true, try looking at exchanges in China, South Korea, Japan and India. Compare it to Poloniex and the other major US/Europe exchangers and you will realise they are not almost the same price. On some trading days (usually spikes or falls) you can see even more than $500 difference.

[leea-1334]

If you want to buy Bitcoin without using your identity like on Craigslist or some personal ad sites, this is not true. You will find they charge even more for anonymous purchase. You want to buy with credit card or paypal? Sure. If you are willing to pay up to 20% more. Market on exchanges are different.

[olubams]

I trade on poloniex and bittrex and I've noticed that prices are very similar and not far off.
Is this just coincidental? or do they share prices? or that traders behave the same?

The reason is very simple because majority of the exchange sites have common set of people as in my own case where I have registered in about five exchange sites so my attitude can be predicted in all these sites so by so doing the price will be similar by the time aggregation is done by all participants and another reason which has been mentioned is the issue of arbitrage which most of this exchange sites are trying to discourage in other to buy from one and sell on the other.

[sujonali1819]

its simple that all exchange has similar price in one time.if price will so far then tradders tranfer from low price exchange to high price exchange and try sell them but after sometime price will similar for start selling.most of the tradders trade or visit few exchange to know the price.for this its occur

[CuriousGeorge]

Arbitrage.
Difference in prices between exchanges can be used to turn a profit; buy on the exchange where stuff is cheaper and sell them on another where prices are higher.
So it's caused by traders (and bots).

I think bots play a major role here,earlier we used to get the price difference and will have the chance to do arbitrage,but now a days it is really impossible,one thing is that the amount of time it takes to send coins to one exchange to the other and the other issue is bots are playing a major role here.

Bot, do you think every exchange site using a bot?  I think one tries to make the rate was same with another exchange site. There is no a lot of different in the volumes, and that's not a manipulation by the traders.
There is a little gab between them.

[Spoetnik]

I trade on poloniex and bittrex and I've noticed that prices are very similar and not far off.
Is this just coincidental? or do they share prices? or that traders behave the same?

Traders equalize the price.. via arbitrage.

If there is a gap the traders will exploit it.. closing the gap eventually.

[azguard]

In theory this can be explained maybe like this, if i remember correct from classes in my high school. Law of supply and demand is interaction between the supply of a resource and the demand for that resource. The law of supply and demand defines the effect the availability of a particular product and the desire (or demand) for that product has on price.

Generally, a low supply and a high demand increases price, and the opposite, the greater the supply and the lower the demand, the lower the price tends to fall.
This is used every day and we see this on every chart and on every exchange.

[linkme]

I trade on poloniex and bittrex and I've noticed that prices are very similar and not far off.
Is this just coincidental? or do they share prices? or that traders behave the same?

I think it's simple to understand that when the prices on a market (1) is higher than another market (2), users on market (2) will buy that coins that causes the increasing of that coins' prices so that the prices on 2 markets should be the same.
If the prices are not the same or not closed, people can use them to make huge profits.

[Ayers]

I trade on poloniex and bittrex and I've noticed that prices are very similar and not far off.
Is this just coincidental? or do they share prices? or that traders behave the same?

lol is this even a question? usually they ask why the price are different not the same, of course they are the same because investors follow ech other, and would be stupid to have a big difference where you can buy cheap and sell for better profit

[mrayazgul]

I trade on poloniex and bittrex and I've noticed that prices are very similar and not far off.
Is this just coincidental? or do they share prices? or that traders behave the same?

Oh my God, what is wrong with you?  The prices differ from time to time and through common state arbitrage, they close the gap until the gap is less than the total fees to arbite out. 

[jennywhzz]

I think that Lego or Disney has a forum somewhere that might be more your speed.  Perhaps the trading of coins that can result in loss is not for you.

This is the bare bones base foundation of economics and if you have trouble with the concepts then you really should stick to FIAT and penny wrapping.