4 ms·
I wonder if it would be possible to "piggyback" on that, and when you see a spoofing attempt, issue a certain order. Your advantage would be to know that their
by captainmuon 9y ago
I wonder if it would be possible to "piggyback" on that, and when you see a spoofing attempt, issue a certain order. Your advantage would be to know that their order is fake and will likely be canceled.
Furthermore, would that be legal? You are just using publicly available information.
- celticninja 9y agoIt would be no more illegal than the original spoofy order.
- kobeya 9y agoIssueing orders you intend to fill would not be illegal, even if in response to spoofed orders.
- eternauta3k 9y agoPersonally, I wonder if this is affecting long-term holders or merely extracting value from short-term traders. Of course, if there is value in short-term trading (eg. adding liquidity) then this is unhealthy for Bitcoin/Ethereum.
- deorder 9y agoBecause the spoofing party already knows what is going to happen as soon as you react to such an order, even by using a bot, you are already too late. Most bitcoin exchanges are not very quick, so you can expect a latency of about several seconds which is too long to even anticipate on this.
- tunetine 9y agoThe transaction fees will eat the little guy up if you don't buy or sell in large amounts.
- LittlePeter 9y agotransaction fees are almost always a percentage of traded amount, hence it does not matter if you trade $10 or $100000