Author [EN] [ZH] [ES] [PT] [IT] [DE] [FR] [NL] [TR] [SR] [AR] [RU] [EN] [ZH] [ES] [PT] [IT] [DE] [FR] [NL] [TR] [SR] [AR] [RU] [EN] [ZH] [ES] [PT] [IT] [DE] [FR] [NL] [TR] [SR] [AR] [RU] Topic: Market peg on third party exchanges  (Read 298 times)

0 Members and 1 Guest are viewing this topic.

Offline matt608

  • Hero Member
  • *****
  • Posts: 878
    • View Profile
Market peg on third party exchanges
« on: September 25, 2014, 09:03:45 PM »

Am I correct in saying that on third party exchanges, such as bter.com which trade BTC/bitUSD the market peg is not in place as it's just a simple exchange, the same as any alt coin, and this is the cause of the unwanted volatility we have seen on bter?
https://bter.com/trade/BITUSD_USD

I had thought we want to have bitassets on as many exchanges as possible to increase demand and go to potential buyers, rather than having them come to us. 

However, I'm now wondering if bitassets being added to third party exchanges could be harmful, as the market peg is not in place there, is it?  Or do we think the price on other exchanges will stay close enough to the decentralized exchange price for it to be worth the risk, after all it is still pretty stable on bter.  Or is the 'market peg' in place there in a way I am not understanding?
« Last Edit: September 25, 2014, 09:05:33 PM by matt608 »

Offline toast

Re: Market peg on third party exchanges
« Reply #1 on: September 25, 2014, 09:06:01 PM »
"market peg" is an abstract concept, not a market mechanic.

The market peg should hold across all exchanges. If there usd/bitusd is undervalued or overvalued on an external exchange, it means either there is an arbitrage opportunity or the peg is actually skewed.
Do not use this post as information for making any important decisions. The only agreements I ever make are informal and non-binding. Take the same precautions as when dealing with a compromised account, scammer, sockpuppet, etc.

Offline matt608

  • Hero Member
  • *****
  • Posts: 878
    • View Profile
Re: Market peg on third party exchanges
« Reply #2 on: September 25, 2014, 09:09:42 PM »
"market peg" is an abstract concept, not a market mechanic.

The market peg should hold across all exchanges. If there usd/bitusd is undervalued or overvalued on an external exchange, it means either there is an arbitrage opportunity or the peg is actually skewed.

Ok thanks.  I understand it's abstract and not market mechanics.  So centralized exchanges could become bitasset exchanges and it should still work.

Offline bytemaster

Re: Market peg on third party exchanges
« Reply #3 on: September 25, 2014, 09:20:31 PM »
"market peg" is an abstract concept, not a market mechanic.

The market peg should hold across all exchanges. If there usd/bitusd is undervalued or overvalued on an external exchange, it means either there is an arbitrage opportunity or the peg is actually skewed.

Ok thanks.  I understand it's abstract and not market mechanics.  So centralized exchanges could become bitasset exchanges and it should still work.

It actually helps us significantly to have centralized exchanges allow trading of the direct asset.  It allows people "make the market" manually without having to provide a bot.  Just offer to buy BitUSD at 98 and sell at 100. 
For the latest updates checkout my blog: http://bytemaster.bitshares.org
Anything said on these forums does not constitute an intent to create a legal obligation or contract between myself and anyone else.   These are merely my opinions and I reserve the right to change them at any time.

Offline matt608

  • Hero Member
  • *****
  • Posts: 878
    • View Profile
Re: Market peg on third party exchanges
« Reply #4 on: September 25, 2014, 09:30:00 PM »
"market peg" is an abstract concept, not a market mechanic.

The market peg should hold across all exchanges. If there usd/bitusd is undervalued or overvalued on an external exchange, it means either there is an arbitrage opportunity or the peg is actually skewed.

Ok thanks.  I understand it's abstract and not market mechanics.  So centralized exchanges could become bitasset exchanges and it should still work.

It actually helps us significantly to have centralized exchanges allow trading of the direct asset.  It allows people "make the market" manually without having to provide a bot.  Just offer to buy BitUSD at 98 and sell at 100.

Ok great, just making sure, as I've been pitching bitassets to a bunch of exchanges.

 

Google+