[POLL] Healthy Exchange Minimum Order Size

[hobbes]

Lots of small orders placed by bots can have a negative impact on exchanges. They clutter the view, manipulate the true "last" price and slow down the trading engine.
Probably there are advantages to very small orders, too, but I can currently not come up with one.

Please elaborate your choice.

[Crenel84]

I chose the lowest, only because there was no "no minimum" option. Display and load problems resulting from small transactions are a problem for an exchange to solve to better serve its customers, not an excuse to burden the customers with restrictions.

[hobbes]

I chose the lowest, only because there was no "no minimum" option. Display and load problems resulting from small transactions are a problem for an exchange to solve to better serve its customers, not an excuse to burden the customers with restrictions.

Option added.

It is also a burden for the peripheral chart/depth display sites like mtgoxlive, clarkmoody and the others.

Also what is the point of an order about 0.001btc ?  It's nothing but dust spam.

[Crenel84]

Also what is the point of an order about 0.001btc ?  It's nothing but dust spam.

I tend to think in terms of more freedom rather than more restriction, because the former does not assume to understand the motivations of others. Also, assuming the exchange is structured to cover its expenses via transaction fees, the point of a 0.001 BTC transaction is the point of any transaction, as far as the exchange is concerned -- it is another transaction on which to charge a fee. (On that note, I could see having a minimum imposed if fees were entirely percentage based, because fees would become impossible below a certain value.)

[vdragon]

Voting for 0.1, and voting for paypal like behaviour. Banning bots, and asking for their grandmothers teeth prints + grandfathers blood sample. If they provide, let them work

[hobbes]

(On that note, I could see having a minimum imposed if fees were entirely percentage based, because fees would become impossible below a certain value.)

I think that is the case with most (all?) exchanges.

With a base fee it would not be a problem at all. A base fee makes calculations more complicated, though.

Voting for 0.1, and voting for paypal like behaviour. Banning bots, and asking for their grandmothers teeth prints + grandfathers blood sample. If they provide, let them work

banning bots would be difficult or bothering to the normal users (pre order captcha?).

Also I think bots are a good thing as they stabilize the market. In theory at least.

[jerkoff]

Automation is normal and healthy for any exchange.
If it slows it down or clutters the book, they should just get better hardware. More limit orders provides more liquidity.

If they do have problems they could try limiting on a per-user base, if they enter many 0.001 orders on the same price, just bundle them into one order, or limit api users to one order per second, that should help.