RE: BitShares 'Market Making On Spread'

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BitShares 'Market Making On Spread'

in bitshares •  7 years ago  (edited)

This is basically triangle arbitrage. You do a loop over three different markets (A:B, B:C, C:A), and end up with a profit in one or more of the assets in question. In addition to making a profit, you benefit the exchange by correcting price imbalances between different markets. It should increase people's courage to trade in any available market.

I think it's a bit hard to understand what the numbers mean on your chart. The "Buy with" and "Sell to" are very understandable, but I wonder if you could shuffle the numbers a bit and show the loop the user could make like this: BTS -> USD -> EUR -> BTS, and display a possible profit as "markets overlap with x%" or something like that. If the number is positive, there's an arbitrage opportunity, if negative, then not.

Thanks for your work! We need people like you :-)

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Thank you very much for your response. You are right, I totally forgot the arrows, I'll update that by the end of day. Let me see what I can do about the loop, maybe it's best when the most profitable position slides to the top and as you said I should get rid of the minus ones.