so these micro transactions are actually effecting the over all price?
This always happens during a sell-off and at key support levels. You'll see lopsided trades (large blocks selling & tiny buys) that keep the bid/ask up long enough for the panic sell to stop.....then the price jumps right back up to the higher bid/ask (that is supported by minuscule trades).
With this kind of volume, the bid/ask should be following the trades lower.
But, how do these little transaction affect the price?
Say I create a SELL order for 1000BTC at USD 200
The bot must make 50000 little orders to bypass my order and make the price down.
Actually, whats the difference in making thousands of little transactions instead of one?
They shouldn't affect the price at all......but the ask always stays inflated at the levels of these tiny trades when Gox lags . And we always bounce right back up to the high ask (well, except for today) even though there are hardly any trades at that level. It's strange. I don't understand why bid/ask don't follow the price lower.....
