Post
Topic
Board Speculation
Re: now that itbit will frontrun orders there will be more volatility ?
by
RyNinDaCleM
on 09/05/2015, 00:24:24 UTC
why would that create more volatility? if anything market makers decrease it by providing additional liquidity.
if i want to buy at 100 and get filled at 102 = more volatility

thats not volatility, thats slippage...

Slippage would entail having some orders matched at 100 and up to 102. In this instance, the order is routed to the MM first, then he decides if he wants to match it or make a trade first. If he decides to buy before myself's order is executed, then he has that choice and it adds volatility by making a larger aggregate order between the two of them, the price moves more than it otherwise would. This all happens before myself's order even hits the books.