Price Discrepancy

Definition ∞ A price discrepancy denotes a difference in the trading value of the same asset across various exchanges or markets at a given moment. This variation occurs due to factors such as liquidity, trading volume, or regional supply and demand dynamics. Such divergences are typically temporary and reflect market inefficiencies.
Context ∞ Price discrepancies are common in volatile markets like cryptocurrencies, presenting opportunities for arbitrageurs to profit from these temporary mispricings. However, such variations can also signal market inefficiencies or data latency issues that merit close observation by participants. Understanding these differences is key to analyzing market efficiency and asset valuation.