<p>It's normally all about <strong>offer and demand</strong>.</p>

<p>A "formula" for an exchange could be something like: <code>BTC price shown on the website = average amound (in $) paid for 1 BTC within the last 2 minutes [- exchange fees]</code></p>

<p>If there are 2 trades in this time:
person A buys 1 BTC for 10,000$ and person B buys 1 BTC for 10,100$, the average is 10,050$. And if there are 500 trades in the last 2 minutes, you get a more accurate average price.</p>

CC BY-SA 3.0
2018-02-04T16:28:58.157Z
2018-02-04T16:28:58.157Z
hardfork
<p>it's value change is analogous to other market thing as gold,silver.</p>

<p>if 1.people  not want Bitcoin suddenly 2.or country ban the Bitcoin 3.bitcoin network get problem with some reason  and many more event cause demand reduce and supply increase so Bitcoin value decrease and vise versa  if demand increase the Bitcoin value increase.</p>

<p>The value of its decided at bitcoin exchange which depends on market (one of main reason is supply and demand).each Bitcoin exchange have own value but not far from other exchange . almost all exchange have equal value.</p>

CC BY-SA 3.0
2018-02-04T17:00:42.577Z
2018-02-04T17:00:42.577Z
Naresh Teli
<p>How does an exchange calculate the price of a coin? I know it has to do with the amount of sell and buy orders, but what is the formula to do this?</p>

<p>For example, if GDAX says one bitcoin is $10k on their exchange, how did they calculate that?</p>

CC BY-SA 3.0
2018-02-04T16:26:18.933Z
It's not a calculation, just a report of the price at which trades are currently taking place.  It's likely either a bid, ask, or last price; you can look up all those on any finance site.  It could also be an average of recent trade prices; you'd have to look carefully at the description attached to the price.
Nate Eldredge
CC BY-SA 3.0
2018-02-05T08:24:00.260Z
[VWAP](https://en.wikipedia.org/wiki/Volume-weighted_average_price)
Rodrigo de Azevedo
<exchanges><trading><exchange-rate>
How does an exchange calculate the price of a coin?
2523454
# How does an exchange calculate the price of a coin?

(Asked by: username_0 on 2018-02-04)

How does an exchange calculate the price of a coin? I know it has to do with the amount of sell and buy orders, but what is the formula to do this?

For example, if GDAX says one bitcoin is $10k on their exchange, how did they calculate that?

**Tags:** exchanges, trading, exchange-rate

> **Comments:**
> **username_1**: It's not a calculation, just a report of the price at which trades are currently taking place.  It's likely either a bid, ask, or last price; you can look up all those on any finance site.  It could also be an average of recent trade prices; you'd have to look carefully at the description attached to the price.  
> **username_2**: [VWAP](https://en.wikipedia.org/wiki/Volume-weighted_average_price)  

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## 2 answers

### Answer by username_3 on 2018-02-04. Score: 2 | Accepted answer

It's normally all about **offer and demand**.

A "formula" for an exchange could be something like: `BTC price shown on the website = average amound (in $) paid for 1 BTC within the last 2 minutes [- exchange fees]`

If there are 2 trades in this time:
person A buys 1 BTC for 10,000$ and person B buys 1 BTC for 10,100$, the average is 10,050$. And if there are 500 trades in the last 2 minutes, you get a more accurate average price.


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### Answer by username_4 on 2018-02-04. Score: 0

it's value change is analogous to other market thing as gold,silver.

if 1.people not want Bitcoin suddenly 2.or country ban the Bitcoin 3.bitcoin network get problem with some reason and many more event cause demand reduce and supply increase so Bitcoin value decrease and vise versa if demand increase the Bitcoin value increase.

The value of its decided at bitcoin exchange which depends on market (one of main reason is supply and demand).each Bitcoin exchange have own value but not far from other exchange . almost all exchange have equal value.


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