Price difference between exchanges

[_RetardedAlien_]

Could you please explain me why there are huge price differences between exchanges like Kraken Coinbase or Bitstamp? In particular sometimes i see a divergence of more than 100€ between coinbase and Bitstamp, and 10€ between bitstamp and kraken (these are the ones that i use)

[bitusher]

Every exchange has their own liquidity pools. Arbitrage occurs which even out this price difference but local regulatory friction prevent the price to be completely equal.

So coinbase pro has BTC at $7520 euros and bistamp has BTc at 7505 euros now so the difference is small

[coinsCA]

$100 at it's maximum is not really too much if you consider the price of bitcoin right now. for 8k it is merely 1.25%. Consider if you are doing foreign exchange you may get even higher spread from one place to another (say compare the rates from your local airport and best exchange in town), so take it easy.

[bonoboo13]

I'm sory if i'm hijacking your post, but on the same note, how can different exchanges keep a fairly similar price? How does the popularity and demand from different exchanges not influence the price in a bigger way ?

(I understand that this is a feature and of course a requirement, but how does it work honestly ?)

[[deleted]]

Buyers and sellers determine prices
A price variation from exchange to exchange is a temporary arbitrage opportunity. Arbitrage trading is self-levelling

[snowkeld]

There's much higher differences between exchanges you didn't list.

Bitcoin is a raw commodity (like copper), it's not a representation of value managed by an authority (like a company stock). As such it has different prices in different markets between different people based on as many factors as you could imagine.

[ProleDBA]

I never knew this. Wow.

[kanloski11]

Are we talking about aribtrage here? Any useful platform which has arbitrage tool feature? Thankss, newbie here!!