#bstockscis @BinanceCIS
What happens when the bStock price and the underlying stock price temporarily diverge?
At first glance, it seems these two assets should move almost in sync. But bStocks trade 24/7, while the traditional U.S. exchange has set trading hours.
As a result, at certain times, a temporary price difference may occur between them.
Binance studied such situations and recorded approximately $216 million in fast trades between bStocks and their corresponding underlying stocks.
In other words, some participants aren’t just buying bStocks and holding them. They monitor the price relationship between two related assets and try to take advantage of moments when it deviates.
But there’s an important caveat here.
A price difference ≠ guaranteed profit.
You need to consider the spread, fees, liquidity, execution speed, and how quickly the prices can converge again.
So for a beginner, it’s useful to remember one simple thing: if two related assets have different prices, you should first understand why the difference has appeared, rather than assuming it will simply go away.
That’s exactly what makes bStocks so interesting: around-the-clock trading creates situations that simply don’t arise when traditional markets are closed at the same time.
What happens when the bStock price and the underlying stock price temporarily diverge?
At first glance, it seems these two assets should move almost in sync. But bStocks trade 24/7, while the traditional U.S. exchange has set trading hours.
As a result, at certain times, a temporary price difference may occur between them.
Binance studied such situations and recorded approximately $216 million in fast trades between bStocks and their corresponding underlying stocks.
In other words, some participants aren’t just buying bStocks and holding them. They monitor the price relationship between two related assets and try to take advantage of moments when it deviates.
But there’s an important caveat here.
A price difference ≠ guaranteed profit.
You need to consider the spread, fees, liquidity, execution speed, and how quickly the prices can converge again.
So for a beginner, it’s useful to remember one simple thing: if two related assets have different prices, you should first understand why the difference has appeared, rather than assuming it will simply go away.
That’s exactly what makes bStocks so interesting: around-the-clock trading creates situations that simply don’t arise when traditional markets are closed at the same time.