When getting a quote on Quick Trade, you may have noticed that the price to buy or sell digital currency is different from the 'market' price displayed in the app. This article explains how pricing and quotes are calculated and shown.
The Markets screen shows the median Canadian Dollar equivalent price for each digital currency available on Quick Trade. The price displayed is half-way between the prices offered to buy and sell each currency. Often referred to as the mid-market price.
The mid-market price gives you an estimate of the current value of the listed digital currencies.
Quick Trade generates trade quotes using a spread. This is similar to how other money exchange services you might already be familiar with operate.
Let’s take the example of exchanging Canadian Dollars for U.S. Dollars at an airport currency exchange booth. In this scenario, we would typically talk about a current exchange rate (actually the ‘mid-market’ price). When you make the exchange from Canadian Dollars to U.S. Dollars, you usually receive a rate that is either higher or lower than the ‘mid-market’ price, depending on whether you are buying or selling. At these exchange booths, display boards often show the buy and sell prices.
The difference between the buy price and the sell price is referred to as the spread.
Much like other trading apps available today, the prices we offer to buy and sell digital currencies on Quick Trade include a spread. Including a spread is an industry-standard practice that allows Quick Trade to eliminate commissions and fees from trading and most deposits and withdrawals.
You’ll notice that the prices shown on the Trade screen differ from the values shown on the Markets screen. This is normal, as Trade quotes reflect the prices offered to buy or sell the requested currency.