BTC Gdax & Binance Price Difference. Why?

[XR62MB]

Can someone please explain why the BTC/USDT price on GDAX is often $300-500 higher than the BTC/USDT price on Binance.
Same with ETH & LTC but a smaller margin of course.
So if I just bought BTC at GDAX and immediately send it to Binance did I just lose an instant few hundred dollars? Don't understand the disparity in price.

Thanks

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[Pursuer]

because first of all it is BTC/USD on GDAX and BTC/USDT on binance. the first one is a market when people can trade bitcoin with US dollar (USD) and the second one is a market where people trade bitcoin with an altcoin called USDT or tether which is not such a trusted altcoin to use. so it may have less demand at times compare to real fiat.

secondly $300-$500 difference in bitcoin price is 2.5%-4.2% difference. that is not a big deal. specially during the high fluctuations when price goes up and down big time. markets are not directly connected to each other and traders are not the same people on everywhere. sometimes there is a bigger demand in one exchange compare to the other which makes this difference.

[Serpens66]

there IS this price differnce because people can NOT do arbitrage without problem. This is simpoly because it is USDT and USD.
You can not sent USDT to gdax/coinbase, so you need to convert the USDT to USD (or other way round) and send them via wire, which is expensive and it is not easy to exchange USD/USDT.

[sarijaya4444]

there IS this price differnce because people can NOT do arbitrage without problem. This is simpoly because it is USDT and USD.
You can not sent USDT to gdax/coinbase, so you need to convert the USDT to USD (or other way round) and send them via wire, which is expensive and it is not easy to exchange USD/USDT.

Do you now where to buy USDT with USD? I don't have any crypto just USD.

[Bolt Brownie]

there IS this price differnce because people can NOT do arbitrage without problem. This is simpoly because it is USDT and USD.
You can not sent USDT to gdax/coinbase, so you need to convert the USDT to USD (or other way round) and send them via wire, which is expensive and it is not easy to exchange USD/USDT.

Do you now where to buy USDT with USD? I don't have any crypto just USD.

You can probably buy it at tether.io, although I never tried it. Bitfinex used to offer both USD and USDT, but I think you can only use USD now. I wouldn't recommend you buying any though, because there is still a lot of conspiracy around them, and until we know what's true and what's fake I would stay away from them. Everyone is asking for an audit for a long time, and until I see one where they can prove that they really have all those USD, to back their USDT, I will not use it.

[1NV3ST0NM3]

Can someone please explain why the BTC/USDT price on GDAX is often $300-500 higher than the BTC/USDT price on Binance.
Same with ETH & LTC but a smaller margin of course.
So if I just bought BTC at GDAX and immediately send it to Binance did I just lose an instant few hundred dollars? Don't understand the disparity in price.

Thanks

Have a closer look and spot difference between this : https://coinmarketcap.com/exchanges/binance/ and this https://coinmarketcap.com/exchanges/gdax/ . Binance has a trading pair with USD tether which is a cryptocurrency pegged against USD. They try to make its value constant by increasing demand and supply. This is USDT https://coinmarketcap.com/currencies/tether/ . So the price difference is because there is a slight difference between price of both these coins.

Now its not just only because of this. There can be difference due to various other reasons too like the volume, the reputation and other things of an exchange. It doesn't really means that its always an opportunity to arbitrage remember the magical concept of transaction fees which will further restrict you from doing it.

[swissgang]

There is also huge difference in usdt prices of liqui, it is maybe due to the fact that they close usdt withdrawals. Huge difference is not good at all.