Quick Question about Exchange Resolution

[Cypherpunk38]

I have a question about how buyers and sellers rectify exchange rate differences when doing a transaction.  Let's say that a buyer says that an item is worth 0.5btc. Now, 0.5btc is worth a certain amount according to Mt. Gox. But it may be worth a different amount according to BitStamp and a different amount still according to BTC-E.  Sometimes, these variances can be over $10.00 USD.

So my question is: how do buyers and sellers rectify these differences?

Thanks!

[zekesonxx]

Buyers and sellers tend to have rates they go by, and it's a do-my-rates-or-don't-trade kinda thing.

For example, I price and sell at Bitstamp last, instead of places like Mt. Gox or BTC-E because I think Bitstamp is the closest to market. There are plenty of others who price at Mt. Gox or BTC-E for similar reasons.

[sublime5447]

http://bitcoinaverage.com/#USD|nogox

This is a good guide but the price is ultimately what you are willing to pay or what they are willing to sell for.

[nahtnam]

The prices are not based off of usd but Bitcoin... It's self substantial. People just assume the price in usd and then think of a fair conversion...

[sasuke234]

http://bitcoinaverage.com/#USD|nogox

This is a good guide but the price is ultimately what you are willing to pay or what they are willing to sell for.

wow, nice site, very useful.

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