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Bitpay Canadian Exchange rate?

testmantestman Member Plus
edited June 2015 in Buying/Selling Bitcoins
I wanted to buy something from a merchant and they use BitPay. When I went to buy the exchange rate made me lose significant value off the price of Bitcoin. The price of Bitcoin was trading over $300 at the time, but the Bitpay exchange rate seemed to be stuck at 296 or lower. The price does fluctuate a bit, but seemingly without relation to the USD price. Considering the price on Quadrigacx and Cavirtex was around $300, I am just trying to determine how their price works...

Actually as I wrote this out, it seems I'm an idiot for not realizing that the delta is their profit ....So now I know, I need to consider that...
I am he as you are he as you are me, and we are all together. See how they run like pigs from a gun, see how they fly.

Comments

  • BruceWayneBruceWayne Member Plus
    @testman I know a lot of merchants using an average price for smoother price range. I think they go as far as an entire week's price-range which smooths it out significantly or as low as a single day. One thing I'm working on in my free time is an options/futures market for merchants and miners so they can potentially offer spot prices while using options to hold profits without passing that delta onto customers. The question kind of is will anyone use this system
  • testmantestman Member Plus
    @BruceWayne not in this case. It seems they have some hybrid based on current rates of Canadian exchanges.... Anyway seems things are good now...
    I am he as you are he as you are me, and we are all together. See how they run like pigs from a gun, see how they fly.
  • BitPay used to use Bitstamp for their Canadian dollar rate (I use this rate for my BTM). As far as I can tell it follows Bitstamp pretty closely but they may have switched to something else.
  • CoinGuyCoinGuy Administrator
    edited June 2015
    @yerofeyev this actually made me look closer. Here is what I learnt:
    To calculate the exchange rate for US Dollars, we pull the market depth from exchanges with adequate liquidity and withdrawal capability in USA and the Eurozone. The exchange order books are merged into a Consolidated Level II table.

    Exchange rates for non-USD currencies are provided by the Open Exchange Rates API at the time the invoice is generated.
    Emphasis in bold is mine...
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