[LOCKED] How an exchange could skim off the top

[420]

Every order not a market order is executed at the price specified.

Lets say the highest bid is at 13.50 for 5BTC

and someone puts in a sell order for 13.49 the same 5btc (lowest sell otherwise is 13.60 for sake of example)

so from what I've seen gox charges the buyer his price of 13.50, and also only gives the seller 13.49 per coin

so that extra cent or whatever gox would keep right? how else could it work!

more extreme example:

highest buy, $14.00 @100btc
lowest sell: $15.00

someone accidentally types $13 when they go to sell 100BTC

they get only $13 per btc, the buyer pays his price of $14/btc

and gox takes off with $100

[MoonShadow]

Are you making an accusation?  Or just speculating?

[420]

Are you making an accusation?  Or just speculating?

A, B, and C:

wanting someone to tell me whats going on

[MoonShadow]

Are you making an accusation?  Or just speculating?

A, B, and C:

wanting someone to tell me whats going on

MtGox openly takes a small percentage of the transfer as a fee.  It's been a while since I messed with MtGox at all, but last I checked, they state that orders should execute at the actual price plus fee even if the bid amount is higher than the ask.

[420]

Are you making an accusation?  Or just speculating?

A, B, and C:

wanting someone to tell me whats going on

MtGox openly takes a small percentage of the transfer as a fee.  It's been a while since I messed with MtGox at all, but last I checked, they state that orders should execute at the actual price plus fee even if the bid amount is higher than the ask.

and im assuming if someones selling at 13.50 and another at 13.49 if someone bids 13.50 they should first takeout the guy selling at 13.49 not skip him, but they always charge the bid price, so where does that extra money go?!

[MoonShadow]

Are you making an accusation?  Or just speculating?

A, B, and C:

wanting someone to tell me whats going on

MtGox openly takes a small percentage of the transfer as a fee.  It's been a while since I messed with MtGox at all, but last I checked, they state that orders should execute at the actual price plus fee even if the bid amount is higher than the ask.

and im assuming if someones selling at 13.50 and another at 13.49 if someone bids 13.50 they should first takeout the guy selling at 13.49 not skip him,

That's been my experience, yes.

but they always charge the bid price, so where does that extra money go?!

Nowhere.  While I have done this kind of thing (not recently and not at this kind of price level), when I put in a bid that is over that of the best ask, I'm charged for the best ask for as many bitcoins as were available at that price.  My account balance doesn't change based upon how much I bid, but how much that actual sale was for, plus fee.

[TangibleCryptography]

Nowhere.  While I have done this kind of thing (not recently and not at this kind of price level), when I put in a bid that is over that of the best ask, I'm charged for the best ask for as many bitcoins as were available at that price.  My account balance doesn't change based upon how much I bid, but how much that actual sale was for, plus fee.

+1.  Thast has been my observation.

To speed execution I routinely trade "under" knowing it will always execute at BAP (best available price").

Example:
Bid is $13.50 I will put a large limit sell order @ $13.45.   It executes "some" at $13.50, "some" at $13.49995, "some" at $13.4x ... etc .... all the way down until either a) the quantity of the limit order is exhausted or b) all available bids >= $13.50 are exhausted.

It is easier to simply put $13.45 in (w/ understanding I may get that low of a price if the bid depth changes before I execute) than try to match bids exactly.   Does the OP actually try to match bids thinking he needs to do that to get the best price?


A limit order isn't saying "sell these 100 BTC at $13.45 even if a better price is available".
A limit order is saying "sell these 100 BTC at NO LESS THAN $13.45 (but get the best possible price you can)".

Unless the OP has an actual trade where this didn't occur I think it is simply a lack of knowledge by the OP, leading to idle speculation.

[420]

I don't see anywhere that it says limit order.

[SgtSpike]

I don't see anywhere that it says limit order.

It doesn't have to state that, because that is exactly how it acts.  Look at your order history to confirm it.

[MPOE-PR]

Example:
Bid is $13.50 I will put a large limit sell order @ $13.45.   It executes "some" at $13.50, "some" at $13.49995, "some" at $13.4x ... etc .... all the way down until either a) the quantity of the limit order is exhausted or b) all available bids >= $13.50 are exhausted.

This is how it works pretty much everywhere that I've heard of. I think the OP is just a little confused.

[420]

Example:
Bid is $13.50 I will put a large limit sell order @ $13.45.   It executes "some" at $13.50, "some" at $13.49995, "some" at $13.4x ... etc .... all the way down until either a) the quantity of the limit order is exhausted or b) all available bids >= $13.50 are exhausted.

This is how it works pretty much everywhere that I've heard of. I think the OP is just a little confused.

I'm just making sure because I can't recall anytime I've seen my transaction listed at a different price than the exact one I asked for

Maybe I am experiencing a brain fart because the person doing the 2nd end of the sale would get the different prices...

[SgtSpike]

Example:
Bid is $13.50 I will put a large limit sell order @ $13.45.   It executes "some" at $13.50, "some" at $13.49995, "some" at $13.4x ... etc .... all the way down until either a) the quantity of the limit order is exhausted or b) all available bids >= $13.50 are exhausted.

This is how it works pretty much everywhere that I've heard of. I think the OP is just a little confused.

I'm just making sure because I can't recall anytime I've seen my transaction listed at a different price than the exact one I asked for

Maybe I am experiencing a brain fart because the person doing the 2nd end of the sale would get the different prices...

It sounds like the orders you've always submitted have been above market rate (if buying) or below market rate (if selling).  Thus, your orders are not filled immediately, and when they are filled, you get exactly the price you were asking.

Try selling a coin for $1 and see what price you actually get for it.

[420]

Example:
Bid is $13.50 I will put a large limit sell order @ $13.45.   It executes "some" at $13.50, "some" at $13.49995, "some" at $13.4x ... etc .... all the way down until either a) the quantity of the limit order is exhausted or b) all available bids >= $13.50 are exhausted.

This is how it works pretty much everywhere that I've heard of. I think the OP is just a little confused.

I'm just making sure because I can't recall anytime I've seen my transaction listed at a different price than the exact one I asked for

Maybe I am experiencing a brain fart because the person doing the 2nd end of the sale would get the different prices...

It sounds like the orders you've always submitted have been above market rate (if buying) or below market rate (if selling).  Thus, your orders are not filled immediately, and when they are filled, you get exactly the price you were asking.

Try selling a coin for $1 and see what price you actually get for it.

Yes I will get to that when I feel comfortable trading in this market again, maybe not a whole darn coin

I think you meant the opposite of above and below, above market rate for selling, below market rate for buying

[fcmatt]

Mtgox is completely fair when buying or selling. I check all the time.

[SgtSpike]

Lol, yes, I meant the opposite.  Whoops.

[420]

alright, sold 0.1 at $10 it sold at market price:

0.10000000 BTC at $13.48000