The good thing is, when they do this, BTC price will rise significantly just from the act of traders taking positions.
Good for whom?
Topic: MTGox commission schedule not conducive to traders/price appreciation (Read 1123 times)
September 19, 2012, 07:12:41 PM
Good for whom?
September 19, 2012, 03:48:54 PM
There would be significantly more trade on MTGox if they updated there commission schedule. Charging a percentage (instead of a flat fee) makes it impossible to momentum trade. It would be nice if I could trade 1000 shares at a time and make a few pennies. If I buy BTC at 12 (assuming a .5% commission), I have to sell it at 12.10 just to break even. Assuming risk, that really means I need to sell it at $13, and that's not a momentum trade. This problem will get worse as the price rises.
Percentages work great for the one-time investor if the price is $3 and you buy 10 BTC, but if you want liquidity in a market, you need momentum traders. I hope they decide to put a cap on the per trade commissions soon.
The good thing is, when they do this, BTC price will rise significantly just from the act of traders taking positions.
Percentages work great for the one-time investor if the price is $3 and you buy 10 BTC, but if you want liquidity in a market, you need momentum traders. I hope they decide to put a cap on the per trade commissions soon.
The good thing is, when they do this, BTC price will rise significantly just from the act of traders taking positions.
Jump to: