Topic: now that itbit will frontrun orders there will be more volatility ? (Read 780 times)
why are people so affraid of volatility? it makes bitcoin a very interesting investment. people always complain. when nothing happens people say bitcoin is boring. when there is good price action people say there is too much volatility.
May 08, 2015, 07:24:24 PM
why would that create more volatility? if anything market makers decrease it by providing additional liquidity.
if i want to buy at 100 and get filled at 102 = more volatility thats not volatility, thats slippage...
Slippage would entail having some orders matched at 100 and up to 102. In this instance, the order is routed to the MM first, then he decides if he wants to match it or make a trade first. If he decides to buy before myself's order is executed, then he has that choice and it adds volatility by making a larger aggregate order between the two of them, the price moves more than it otherwise would. This all happens before myself's order even hits the books.
May 08, 2015, 07:43:10 AM
why would that create more volatility? if anything market makers decrease it by providing additional liquidity.
if i want to buy at 100 and get filled at 102 = more volatility thats not volatility, thats slippage...
May 08, 2015, 07:40:02 AM
And itbit is still rather small isn't it?
4500 coins today. Respectable but not a player by any means yet. I wonder whether it'll kick off rapidly or float forlornly around.
May 08, 2015, 07:32:39 AM
Many other exchanges do that already. I remember at least Karpeles confessed to trade on his own exchange (at that time he did not have any good alternative actually).
And itbit is still rather small isn't it?
And itbit is still rather small isn't it?
May 08, 2015, 07:27:18 AM
why would that create more volatility? if anything market makers decrease it by providing additional liquidity.
if i want to buy at 100 and get filled at 102 = more volatility May 08, 2015, 07:24:52 AM
Isn't this pretty much insider trading?
who cares, is in the terms so is ok, i am looking at how much money this can make me, because i trade on other venue i dont really care what itbit does May 08, 2015, 07:23:11 AM
why would that create more volatility? if anything market makers decrease it by providing additional liquidity.
May 08, 2015, 07:16:34 AM
Isn't this pretty much insider trading?
May 08, 2015, 07:15:52 AM
i hope not much, because the price is not that great and generating a higher volatility can break the 200 barrier easily, and put investors in a fence and fear situation, which could cause a major drop lately
May 08, 2015, 06:33:05 AM
Quote
2.26. We intend to engage one or more market makers (each, an “MM”), which may also be affiliated with us, to act as liquidity providers on the Exchange. You understand and agree that we may provide information concerning bids and offers provided by you and other participants on the Exchange to such MMs prior to posting such bids and offers to the Exchange. The MMs will have the opportunity, but not the obligation, to accept and fill such bids and offers prior to the other participants on the Exchange (including you) and, as a result, such bids may be matched at higher prices and such offers may be matched at lower prices than they otherwise would have been had they been routed directly to the Exchange.
http://redd.it/358wcbi just wonder how much volatility this can generate ?
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