Author Topic: Why spread is so large?  (Read 2119 times)

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Offline eng

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Where I've seen from https://coinmarketcap.com/exchanges/bitshares-asset-exchange/
bitCNY:BTS has 80% market, we want much volume for many markets.


And I want to ask, can we say dex have lower fee than centralized exchanges?
In terms of system, witnesses' process is similar to normal exchange. And witness do it because they want fee same as normal exchanges.
And API server like OpenLedgers is in the middle between witnesses and users, they run their services also because they want fee.
I think fundamentally there will be no large difference of fee between dex and centralized exchanges regardless current situation.
« Last Edit: July 22, 2017, 08:20:10 pm by eng »

Offline JonnyB

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Liquidity, market depth, volume

This is what all exchanges crave.

People will tend to trade on the exchange that have these in abundance, and it becomes a positive feedback loop.
Low fees aren't much good if the exchange has huge spreads.
We need market making bots run by as many people as possible and especially openledger themselves.
Anyone can run a MM bot using www.btsbots.com
I suggest we concentrate on Bitusd market pairs as USD is widely understood, held, used and is a smartcoin as apposed to a UIA.



I run the @bitshares twitter handle
twitter.com/bitshares

Offline eng

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I see. I like dex because it can have lower fee than centralized exchange.
But I understand, in terms of spread, market depth is more important factor.

Offline yvv

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Bitshares market is much shallower than poloniex, hence larger spread, more deviation from a "fair" price from time to time.

Yes, there may be an arbitrage opportunity right now.

Offline eng

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But normal exchange like poloniex doesn't have such large spread. (And I noticed ask/bid price is largely different from poloniex, there may be big chance of arbitrage.)
Does BitShares have some system feature that is cause of this problem?
Or is it just because of the timing I see the order books?
« Last Edit: July 20, 2017, 03:37:25 pm by eng »

Offline yvv

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I guess, people hesitate to trade OPEN.BTC because of uncertainty related to upcoming BTC fork. It is traded below the feed price during last couple of weeks. I had a hard time to sell them recently. Still keep some smaller amount of it for trade.

Offline eng

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Currently best bid for OPEN.BTC:bitUSD is $2,295
and best ask is $2390
Spread is about $100!!
Why?