Global Price Disparity

Definition ∞ Global price disparity describes a situation where the price of a cryptocurrency varies significantly across different international exchanges or trading platforms. This divergence can arise from variations in liquidity, regulatory restrictions, trading fees, or localized supply and demand pressures. Such disparities create arbitrage opportunities for traders who can buy an asset cheaply on one exchange and sell it for a higher price elsewhere. It indicates inefficiencies within the global market structure.
Context ∞ Global price disparity is a frequent topic in crypto news, particularly when discussing market efficiency and arbitrage opportunities. Reports often highlight specific regional premiums or discounts, which can signal localized market conditions or capital controls. The ongoing challenge for market participants involves identifying and capitalizing on these price differences while accounting for transaction costs and execution risks across various international trading venues.