Bitcoin Forum
December 06, 2016, 08:13:54 AM *
News: Latest stable version of Bitcoin Core: 0.13.1  [Torrent].
 
   Home   Help Search Donate Login Register  
Pages: [1]
  Print  
Author Topic: Dark pools - how do they work?  (Read 2390 times)
genjix
Legendary
*
Offline Offline

Activity: 1232


View Profile
April 29, 2011, 11:40:17 AM
 #1

Hey,

I want to add dark pools to Britcoin. How do the dark pools on MtGox work? They also have 'dark pool with normal' - what's that?
1481012034
Hero Member
*
Offline Offline

Posts: 1481012034

View Profile Personal Message (Offline)

Ignore
1481012034
Reply with quote  #2

1481012034
Report to moderator
1481012034
Hero Member
*
Offline Offline

Posts: 1481012034

View Profile Personal Message (Offline)

Ignore
1481012034
Reply with quote  #2

1481012034
Report to moderator
1481012034
Hero Member
*
Offline Offline

Posts: 1481012034

View Profile Personal Message (Offline)

Ignore
1481012034
Reply with quote  #2

1481012034
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1481012034
Hero Member
*
Offline Offline

Posts: 1481012034

View Profile Personal Message (Offline)

Ignore
1481012034
Reply with quote  #2

1481012034
Report to moderator
1481012034
Hero Member
*
Offline Offline

Posts: 1481012034

View Profile Personal Message (Offline)

Ignore
1481012034
Reply with quote  #2

1481012034
Report to moderator
1481012034
Hero Member
*
Offline Offline

Posts: 1481012034

View Profile Personal Message (Offline)

Ignore
1481012034
Reply with quote  #2

1481012034
Report to moderator
TheKoziTwo
Legendary
*
Offline Offline

Activity: 1479



View Profile
April 29, 2011, 12:07:01 PM
 #2

Quote
The Mt Gox dark pool allows you to buy or sell large quantities of BTC without moving the market.

You can mark any buy or sell order with a value over $1000 as being in the dark pool.

Orders in the dark pool don't show up on the order book.

There are 2 types of dark pool orders.
Dark pool and Normal - Can be filled either partially from the normal orders or the dark pool.
Dark pool Only - Can be filled only by other dark pool orders or a single normal order that is larger than the dark pool order. This means that if there is a single normal order that would fill the dark pool order both will be filled.

ByteCoin
Sr. Member
****
Offline Offline

Activity: 416


View Profile
April 29, 2011, 12:55:41 PM
 #3

Hey,

I want to add dark pools to Britcoin. How do the dark pools on MtGox work? They also have 'dark pool with normal' - what's that?


Some people don't want their bid/asks to show publicly for various reasons. They could write a bot that polls mtgox to monitor the price and then post their bid/asks accordingly. This polling would be a strain on the mtgox website so mtgox implements dark pools to provide the same functionality in situ.

Whether dark pool users should trust mtgox is an interesting question. I imagine there are arbitrage opportunities for mtgox based on the fact that mtgox can re-order incoming currency transactions and make his own dark pool trades which he says are other people's dark pool trades. This would be hard to detect and very lucrative.

ByteCoin
sjk
Newbie
*
Offline Offline

Activity: 10


View Profile
April 29, 2011, 12:55:54 PM
 #4

What you want to implement is called "Dark Liquidity" and the wikipedia article has a very good overview of this concept: http://en.wikipedia.org/wiki/Dark_liquidity
It also explains how a dark pools works as well

1HV2wPKG4TQpLs7N4QsCHQr9Q2FjmFzCNw
genjix
Legendary
*
Offline Offline

Activity: 1232


View Profile
April 29, 2011, 01:17:39 PM
 #5

What you want to implement is called "Dark Liquidity" and the wikipedia article has a very good overview of this concept: http://en.wikipedia.org/wiki/Dark_liquidity
It also explains how a dark pools works as well

Yeah I read all that but am unsure which method MtGox uses, and what parameters they use.
BitterTea
Sr. Member
****
Offline Offline

Activity: 294



View Profile
April 29, 2011, 01:19:55 PM
 #6

I would implement dark pools as per nanotube's explanation.
cypherdoc
Legendary
*
Offline Offline

Activity: 1764



View Profile
April 29, 2011, 02:11:29 PM
 #7

Hey,

I want to add dark pools to Britcoin. How do the dark pools on MtGox work? They also have 'dark pool with normal' - what's that?


Some people don't want their bid/asks to show publicly for various reasons. They could write a bot that polls mtgox to monitor the price and then post their bid/asks accordingly. This polling would be a strain on the mtgox website so mtgox implements dark pools to provide the same functionality in situ.

Whether dark pool users should trust mtgox is an interesting question. I imagine there are arbitrage opportunities for mtgox based on the fact that mtgox can re-order incoming currency transactions and make his own dark pool trades which he says are other people's dark pool trades. This would be hard to detect and very lucrative.

ByteCoin

these are very valid points.
genjix
Legendary
*
Offline Offline

Activity: 1232


View Profile
May 01, 2011, 10:54:17 AM
 #8

Cool. Any more info? I can get my finance friend to read through all of this.
gareth69
Newbie
*
Offline Offline

Activity: 22


View Profile
May 01, 2011, 12:23:01 PM
 #9

Hey,

I want to add dark pools to Britcoin. How do the dark pools on MtGox work? They also have 'dark pool with normal' - what's that?


Gen you say you don't offer refunds on partially completed orders Can I amend an order then? So if I put buy 100BCT for 100GBP at 1GBP per BCT, get it half filled, then price moves to say 2GBP per BCT - there is no way that the order is going to be filled.

Are you seriously saying that people will lose 50% of their money, if the order is not filled and the price moves away from the order?
superduh
Hero Member
*****
Offline Offline

Activity: 602


View Profile
July 16, 2013, 03:43:28 AM
 #10

we need more of these. today.

ok
bitcoinbear
Hero Member
*****
Offline Offline

Activity: 518


View Profile
July 16, 2013, 07:37:10 PM
 #11

we need more of these. today.

Why? What is the advantage to dark pools?

CryptoNote needs you! Join the elite merged mining forces right now here in Fantomcoin topic: https://bitcointalk.org/index.php?topic=598823.0
Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!