Topic: An idea for an exchange: No trading fees except after withdrawal. (Read 1046 times)
There are strategies that will allow you to do tons of money in the world of friction less trade... This place is never vacant.
October 09, 2012, 06:44:41 AM
So what happens when you make a bad trade and you're left with less than what you owe the exchange?
How would the exchange cover the trades if not enough people were depositing?
How would the exchange cover the trades if not enough people were depositing?
You can't owe less than 5%. In my idea, the 5% comes out of whatever left that you have to withdraw. Whoever profited from your bad trades will pay whatever you didn't.
I don't understand your last question.
Yeah sorry I was a bit tired and confused when I read your initial post. I actually think it's a great idea from a speculator's perspective, as long as there's enough trading going on.
October 09, 2012, 03:45:47 AM
Open Transactions charges one "usage credit" per API call.
No percentages, no caring whether the API call was a query as to what markets exist, a query as to what offers exist, the placing of an offer, the transfer of a million somethings to someone, just each API call you make costs one usage credit.
I have not actually turned on usage credits yet so currently they are not being charged. I want to make a script for easily assigning people usage credits before I turn it on. Then I will get to observe how many API calls the current GUI client makes in normal operation thus how many usage credits it tends to burn through how fast thus how much to sell usage credits for.
As to fees on withdrawals, or for that matter fees on entry to the system, I hope third parties will handle most of that, basically if you want to trade bitcoins you buy some digibitcoins from someone using some real bitcoins (or anything else they are willing to sell the tokens for), and when you want to cash out of the system back to actual bitcoins they buy your tokens from you with real bitcoins or whatever else you are willing to accept for your tokens.
I thus expect there will probably in practice be fees both on entry and on exit, just like when you bought e-gold or liberty reserve or pecunix etc from third parties or cashed back out by selling your e-gold or liberty reserve or pecunix etc to such third parties.
These third parties would be my customers I ought to know as in KYC, since they would be the people who actually "bail in" and "bail out" bitcoins, litecoins, etc etc to and from my cold wallets in my safety deposit boxes or whatever, much like the third parties for e-gold were the ones who actually shipped real gold to vaults and had real gold shipped out to them from the vaults.
Hopefully the vaults will before long never need to be touched, due to their containing enough assets to back enough tokens to provide a fat enough pipe to handle the volume of trade, (The more velocity the less fat the pipes needed presumably.)
-MarkM-
No percentages, no caring whether the API call was a query as to what markets exist, a query as to what offers exist, the placing of an offer, the transfer of a million somethings to someone, just each API call you make costs one usage credit.
I have not actually turned on usage credits yet so currently they are not being charged. I want to make a script for easily assigning people usage credits before I turn it on. Then I will get to observe how many API calls the current GUI client makes in normal operation thus how many usage credits it tends to burn through how fast thus how much to sell usage credits for.
As to fees on withdrawals, or for that matter fees on entry to the system, I hope third parties will handle most of that, basically if you want to trade bitcoins you buy some digibitcoins from someone using some real bitcoins (or anything else they are willing to sell the tokens for), and when you want to cash out of the system back to actual bitcoins they buy your tokens from you with real bitcoins or whatever else you are willing to accept for your tokens.
I thus expect there will probably in practice be fees both on entry and on exit, just like when you bought e-gold or liberty reserve or pecunix etc from third parties or cashed back out by selling your e-gold or liberty reserve or pecunix etc to such third parties.
These third parties would be my customers I ought to know as in KYC, since they would be the people who actually "bail in" and "bail out" bitcoins, litecoins, etc etc to and from my cold wallets in my safety deposit boxes or whatever, much like the third parties for e-gold were the ones who actually shipped real gold to vaults and had real gold shipped out to them from the vaults.
Hopefully the vaults will before long never need to be touched, due to their containing enough assets to back enough tokens to provide a fat enough pipe to handle the volume of trade, (The more velocity the less fat the pipes needed presumably.)
-MarkM-
October 08, 2012, 06:41:15 AM
So what happens when you make a bad trade and you're left with less than what you owe the exchange?
How would the exchange cover the trades if not enough people were depositing?
How would the exchange cover the trades if not enough people were depositing?
You can't owe less than 5%. In my idea, the 5% comes out of whatever left that you have to withdraw. Whoever profited from your bad trades will pay whatever you didn't.
I don't understand your last question.
October 08, 2012, 06:39:45 AM
So what happens when you make a bad trade and you're left with less than what you owe the exchange?
Why would you owe the exchange anything?It would work like any other exchange except the necessary fee would only come after you withdraw your money from the exchange, say a flat 5%.
Try it and see how it does in the market. I think non-speculators wouldn't like to trade on such an exchange nearly as much, and speculators don't want to do business with just each other. But maybe I'm wrong. October 08, 2012, 06:29:41 AM
So what happens when you make a bad trade and you're left with less than what you owe the exchange?
How would the exchange cover the trades if not enough people were depositing?
How would the exchange cover the trades if not enough people were depositing?
October 08, 2012, 06:17:10 AM
It would work like any other exchange except the necessary fee would only come after you withdraw your money from the exchange, say a flat 5%.
Whether you buy or sell, you will not have to worry about the fee or tobin tax in your trade. If you sell high and buy low with even a satoshi of difference, that profit will be right in your account. You will only have to consider how much profit you will need to cover your expense when you withdraw.
What if you deposit money, don't trade and back out? That's fine. No fee will be deducted unless you make a single trade.
Thoughts?
This exchange would be suited for speculators and not somebody who just wants to sell or buy BTC.
Here's the dream behind this: Imagine being able to trade 1 BTC up to 10 BTC with no restrictive fees stopping you along the way!
Whether you buy or sell, you will not have to worry about the fee or tobin tax in your trade. If you sell high and buy low with even a satoshi of difference, that profit will be right in your account. You will only have to consider how much profit you will need to cover your expense when you withdraw.
What if you deposit money, don't trade and back out? That's fine. No fee will be deducted unless you make a single trade.
Thoughts?
This exchange would be suited for speculators and not somebody who just wants to sell or buy BTC.
Here's the dream behind this: Imagine being able to trade 1 BTC up to 10 BTC with no restrictive fees stopping you along the way!
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