Post
Topic
Board Speculation
Re: Small high frequency trades on Mt Gox
by
Yuvea
on 24/08/2011, 16:40:42 UTC
Just thinking guys, can mtgox be profiting from these tiny trades? Mtgox makes commission on trades, so can they have a bot installed that tries and pushes these small trades?

If I owned mt gox, I would definietly be trying to make a bot do lots of small trades when it can to try and make extra comissions.

let's just do a reality check...

1$ trade means this fee:
1$ * 0.65% = 0.0065$

If I do 2 trades for half a dollar each, I traded a full dollar:
1$ = 0.5$ + 0.5$

and paid the same fee on both half's:
0.5$ * 0.65% = 0.00325$

which results in exactly the same total fee:
0.00325$ + 0.00325$ = 0.0065$

So no, you wouldn't do lots of small trades for that reason.