JerryMungo
Honorary Master
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- Jul 18, 2008
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Fx / Stocks / Crypto exchange prices - how do they work?
- Thread starter JerryMungo
- Start date
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...
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
Honorary Master
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.
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.
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)
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
Honorary Master
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.
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.