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Author Topic: now that itbit will frontrun orders there will be more volatility ?  (Read 752 times)
myself (OP)
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May 08, 2015, 11:33:05 AM
 #1

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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/358wcb

i just wonder how much volatility this can generate ?

Los desesperados publican que lo inventó el rey que rabió, porque todo son en el rabias y mas rabias, disgustos y mas disgustos, pezares y mas pezares; si el que compra algunas partidas vé que baxan, rabia de haver comprado; si suben, rabia de que no compró mas; si compra, suben, vende, gana y buelan aun á mas alto precio del que ha vendido; rabia de que vendió por menor precio: si no compra ni vende y ván subiendo, rabia de que haviendo tenido impulsos de comprar, no llegó á lograr los impulsos; si van baxando, rabia de que, haviendo tenido amagos de vender, no se resolvió á gozar los amagos; si le dan algun consejo y acierta, rabia de que no se lo dieron antes; si yerra, rabia de que se lo dieron; con que todo son inquietudes, todo arrepentimientos, tododelirios, luchando siempre lo insufrible con lo feliz, lo indomito con lo tranquilo y lo rabioso con lo deleytable.
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May 08, 2015, 12:15:52 PM
 #2

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
Tzupy
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May 08, 2015, 12:16:34 PM
 #3

Isn't this pretty much insider trading?

Sometimes, if it looks too bullish, it's actually bearish
lebing
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May 08, 2015, 12:23:11 PM
 #4

why would that create more volatility? if anything market makers decrease it by providing additional liquidity.

Bro, do you even blockchain?
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myself (OP)
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May 08, 2015, 12:24:52 PM
 #5

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

Los desesperados publican que lo inventó el rey que rabió, porque todo son en el rabias y mas rabias, disgustos y mas disgustos, pezares y mas pezares; si el que compra algunas partidas vé que baxan, rabia de haver comprado; si suben, rabia de que no compró mas; si compra, suben, vende, gana y buelan aun á mas alto precio del que ha vendido; rabia de que vendió por menor precio: si no compra ni vende y ván subiendo, rabia de que haviendo tenido impulsos de comprar, no llegó á lograr los impulsos; si van baxando, rabia de que, haviendo tenido amagos de vender, no se resolvió á gozar los amagos; si le dan algun consejo y acierta, rabia de que no se lo dieron antes; si yerra, rabia de que se lo dieron; con que todo son inquietudes, todo arrepentimientos, tododelirios, luchando siempre lo insufrible con lo feliz, lo indomito con lo tranquilo y lo rabioso con lo deleytable.
myself (OP)
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May 08, 2015, 12:27:18 PM
 #6

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

Los desesperados publican que lo inventó el rey que rabió, porque todo son en el rabias y mas rabias, disgustos y mas disgustos, pezares y mas pezares; si el que compra algunas partidas vé que baxan, rabia de haver comprado; si suben, rabia de que no compró mas; si compra, suben, vende, gana y buelan aun á mas alto precio del que ha vendido; rabia de que vendió por menor precio: si no compra ni vende y ván subiendo, rabia de que haviendo tenido impulsos de comprar, no llegó á lograr los impulsos; si van baxando, rabia de que, haviendo tenido amagos de vender, no se resolvió á gozar los amagos; si le dan algun consejo y acierta, rabia de que no se lo dieron antes; si yerra, rabia de que se lo dieron; con que todo son inquietudes, todo arrepentimientos, tododelirios, luchando siempre lo insufrible con lo feliz, lo indomito con lo tranquilo y lo rabioso con lo deleytable.
zby
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May 08, 2015, 12:32:39 PM
 #7

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?
gentlemand
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May 08, 2015, 12:40:02 PM
 #8


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.
lebing
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May 08, 2015, 12:43:10 PM
 #9

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...

Bro, do you even blockchain?
-E Voorhees
RyNinDaCleM
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May 09, 2015, 12:24:24 AM
 #10

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.

randy8777
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May 09, 2015, 12:31:08 AM
 #11

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.
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