Why my sell price is different from the buy price?
To know why the sell price is different from the buy price, watch the video below.
- The buy/sell difference exists in all markets irrespective of whether you trade crypto, stocks, bonds, or forex.
- It is not something that CoinSwitch decides, but the market decides.
- This gap or difference between the lowest asking price (sell order) and the highest bid price (buy order) is called the spread.
- Any trading markets work on spreads, i.e., the difference between the buy and sell prices; it is natural that one of these prices will be high and one lower.
- To understand this difference better, you can read this blog.
Why is my average buy price different from the current buy price?
- The average buy price of a coin is the averaged buy price of a coin that has been bought/purchased at multiple intervals(orders).
You just bought your first 10 BTC coins at the rate of 100 per coin, the Average Buy Price will also be 100.
You bought 20 more coins at the rate of 150 per coin, the Average Buy Price will become (10*100 + 20*150)/(10+20) = 133.3
- Current value is the product of the current sell price and the number of coins that you hold.
Why is there a difference in the preview page and executed sell price?
To understand this difference, watch the video below.
- If yes, do not worry! This is normal and is caused by exchange liquidity.
- This is due to the difference between the number of coins, buyers, and sellers available in the market at the time of the trade.
- For example:
- If you want to buy 100 DOGE and there are 4 sellers who want to sell 25 DOGE each at 1 DOGE at 12 INR, 13 INR, 14 INR, and 15 INR respectively available at that time in the market.
- Your sell price on the preview page will be the best available sell price in the market at that time, i.e., 12 INR.
- Your execution sell price will be the net sell price in the market at that time, i.e., 13.5 INR.