Fx / Stocks / Crypto exchange prices - how do they work?

[Willie Trombone]

How do independent exchanges determine the advertised price on a currency pair / stock? I mean, I know they follow the general trend, but how do the individual buy / sell prices work technically?

 

[Snyper564]

Supply and demand - willing buyer/willing seller economics 101

 

[Willie Trombone]

Supply and demand - willing buyer/willing seller economics 101

Right, that's the nebulous answer. Anyone have direct insight into the algo?
I mean, if the market is dead quiet and I jump in and place a sell on a fraction of a BTC for $1000, the price is not going to significantly move. My question is how is the price determined?
Also, who gets my fraction of a BTC for $1k? How does the system decide?

 

[Snyper564]

The exchange is the same as me walking up to you and saying hey let me buy your one btc for R570K simple as that...

There is no algo. All exchanges are driven by the general trend but it can all go down to one simple trade me and you and nothing else is listed on that exchange you happy with the R570K you take it and thats the new price on the exchange...

 

[TofuMofu]

It's literally one person buying from another person. No weird system decides where it goes and whatnot.

You place an order for R570k and the seller decides to take that offer or place a higher sell offer. It's up to the buyers and sellers to decide what they are willing to pay for the BTC.

Buying at market price (sell orders) rises the price and selling at market price (buy orders), lowers the price.

 

[/dev/null]

Buyer puts in a Bid
Seller puts in a Ask
When the 2 numbers match a deal takes place and that becomes the new "market price". If this deal was significantly lower/higher than market related, then the next deal (maybe a second later) will correct this and there might appear a huge spike in the chart.

(At least that how I understand it)

 

[SauRoNZA]

Only difference is of course base currency conversion in the background makes the price looks different on exchanges.

Like Luno and Valr etc with local ZAR accounts., compared to direct USD charts.

I do believe volumes alter the spread but I couldn’t explain that to you if I tried, but this is also why the candles are different from one exchange to another I believe.