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Author Topic: mtgox.com restriction to 4 decimal places  (Read 1620 times)
mizerydearia
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September 16, 2010, 07:35:38 AM
 #1

Be advised that this isn't implemented yet, but is in consideration.

Attempting to bid or ask for an amount:
2000@0.05055001 will result in a bid/ask placed for 2000@0.0506 <-- bitcoinmail!

2000 * $0.05055001 == $101.10002
2000 * $0.05060000 == $101.20000

$0.10 difference for 2,000 bitcoins isn't so noticeable, but, exchange 2,000 bitcoins back and forth for example 1,000 times if you are a trader

1000 * $0.10 == $100

Maybe 5 decimal places?  And then when you switch to 5 places, we can argue for 6 places, and then 7, 8, ... OVER 9,000? O_O

Quote
Sep 14 15:17:36 <mtgox>   I think I might be making it so prices are limited to $0.001 so there is more chance of trades happening
Sep 14 15:19:04 <necrodearia>   mtgox: Do you mean you will limit asks/bids to 3 decimal places?
Sep 14 15:19:18 <mtgox>   I'm thinking about it
Sep 14 15:19:27 <necrodearia>   How come?
Sep 14 15:22:10 <mtgox>   All markets have precission limits
Sep 14 15:23:44 <nanotube>   mtgox: if you do decide to limit it, at least limit it to 0.00001, not 0.001 (i.e., 5 rather than 3 decimals)
Sep 14 15:24:26 <mtgox>   yeah maybe 3 digits isn't the right limit but there should be some limit
Sep 14 15:28:44 <mtgox>   let me find the email where this was suggested...
Sep 14 15:29:46 <mtgox>   1) I think it would help the spreads a lot to lock prices to something,say two tenths of a cent, so available bids would be like $.072, $.074, etc. This would make Mt. Gox function more like a standard market, (no more .071195 type prices),and make it easier for people to see and plug pricing gaps. Once there's enough liquidity, you could open up tenths of a cent.
Sep 14 15:29:58 <mtgox>   Re: the spread -- the minimum spread would now be 0.2; more trades will occur as all the people who try to undercut any spread less than 0.2 now will just trade. And, as you say, it reduces annoyance for those trying to cut in line.
Sep 14 15:52:50 <mtgox>   well I think there is a reason all other exchanges limit precision of transactions. but anyway I'm not doing it any time real soon.

On a separate note
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Sep 14 15:53:03 <mtgox>   Paging through your account history finally works
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September 16, 2010, 03:22:31 PM
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4 decimals is fine. I would even go the other way, and suggest 1/2000 quotes - bids go from 0.0600, 0.0605, .0610, etc. On 1,000 coin orders, this is a 50 cent bid/ask, which I think is reasonable.

If I buy 10,000 coins with precision of 0.00001, this is $0.10 difference. 1,000 coins would need to change hands for it to be 1 US penny difference.

good judgment comes from experience, and experience comes from bad judgment
mizerydearia
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September 17, 2010, 08:57:02 AM
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I noticed BitcoinMarket restricts to 4 decimal places, so it seems fairly established already.
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