In this video, we are going to examine the 24 hour volume listed on GDAX. By the end of this video, we will see that there is something mysterious about the displayed value.
We know that volume is the total number of units traded for any given asset during a particular period. When we see a volume number for Bitcoin for example, we need to know more than just the number. We need to have context around the number. We need to know when and where the volume occurred.
We learned how to read the volume bars on GDAX over different time periods. The selected time period on the price chart gave us the when and the fact that we are on GDAX gave us the where.
<p><iframe width="560" height="315" src="
frameborder="0" allow="autoplay; encrypted-media" allowfullscreen></iframe></p>Let me know if you have any questions.
Could the 24 hour volum include Coinbase purchases and not just those on GDAX?
That's a good thought. This was someone else's thought as well.
Here are my thoughts:
I don't have any specific knowledge of Coinbase's backend, but I suspect that Coinbase purchases are routed directly to GDAX. In other words, Coinbase's backend is GDAX, and Coinbase acts more as a broker. Coinbase exchange changed to GDAX in 2016. Source: https://blog.coinbase.com/coinbase-exchange-is-now-gdax-adds-ether-trading-a82cc628aa79
Given this, I wouldn't expect the volume on Coinbase to be separate from what we see in the trade history occurring on GDAX. This is just speculation though.
This is stated in the trading rules:
“3.4 Coinbase, Inc., which owns and operates GDAX, also trades its own corporate funds on GDAX. “
Here is a another reference:
What is a broker-dealer? -
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