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I want to know how the price is determined daily for bitcoins. I know that exchanges determine it based on the exchanges that happens in their bitcoin-exchange site.
But lets take there is a new exchange so how do we get the bitcoin price intially and how to calculate from there.
This question has been asked before and already has an answer. If those answers do not fully address your question, please ask a new question.
Typically, you have three prices: The "buy price" is the lowest price you can buy a fraction of a Bitcoin for at any particular time. The "sell price" is the highest price you can get for a fraction of a Bitcoin. Any time a buyer and seller agree to exchange Bitcoins for a particular price, an exchange takes place, and a "last price" is established.
So when you have a new exchange, initially you have no price. After a few people place offers to buy or sell Bitcoins, you'll have a "buy price" and a "sell price". As soon as the first exchange takes place, you have a "last price". As people place and remove offers and exchanges take place, these prices update.
You can also track a few other prices over time. The "high price" is the most someone had to pay for a fraction of a Bitcoin over some particular period of time. That means nobody was willing to sell any Bitcoins for less at that time. The "low price" the least someone sold a Bitcoin for over some particular time period. That means nobody was willing to pay them any higher price at that time.
