Raphael,
Thanks for updating this on us. I can definitely see how the changes yield some improvements in the interface and the API side of things, and I appreciate those improvements. However, I do have one concern: the incorporation of commission differences directly into prices now makes it harder to maximize potential gains. Because if I think, for example, that the price is going to drop to $800 and I want to buy at $800, I used to have the option of setting a buy limit at $800 and then either paying a 0.15% or 0.35% commission depending on the exchange of execution. If I wanted to make sure I didn't pay the higher commission, I could route it through only Bitfinex. Now, however, I'd have to set my buy limit at roughly $801.6 if I think the price will fall to $800, because I don't know if the $800 price will occur on Bitstamp or Bitfinex. While this is fine if the nominal $800 price is reached on Bitstamp and not on Bitfinex, it decreases my potential gains if the nominal $800 price is reached on Bitfinex, because I was not able to set the buy limit at $800 due to the uncertainty of the exchange on which it would occur.
Again, I appreciate the improvements that the changes have brought, but would there be any way to make it possible to place limit orders at prices that are actually present on Bitstamp's order book, not only at prices that are adjusted for potential commission differences? This would really help the problem I described. Thanks!
Hello,
Yes indeed, although that is where a long running problems occurred: The price may touch 800 on Bitstamp, while no Bitstamp ask being ever posted at 800 or lower. In other words, even with our old system, you would not be executed even though you were right on this prediction (and this often happens when there is psychological levels barely touched). IN other words, you were never able to profit from market liquidity of bitstamp, always limit orders liquidity, and the way we displayed bitstamp orderbook were always confusing in that regard, leading people to think we were just a front-end of Bitstamp.
So this was part of our decision: we want to make Bitfinex a true market on its own. Bitstamp orderbook will help adding depth, which is especially useful for margin trading, however we do want traders to elaborate their strategies more on Bitfinex market. As we are growing (and we are every day that passes), the internal liquidity is more and more important and the situation where Bitfinex drives Bitstamp price happens more and more often (sometimes Bitstamp moves our price, sometimes we do move Bitstamp price). So an analysis based on Bitfinex movements does make sense.
To finish, yes I understand your point, but I can only say that this is your call weither you better trade directly on Bitstamp, or if Bitfinex added liquidity and features are worth it despite this.
Have a good day
Raphael