So you cant really be sure of your position until the standard 6 confirmations.
Also a miner can game the system by front-running trades after solving a block.
Also there are many "latency arbitrage" "alpha" strategies that can be used to game the system, since it is possible to to make a trade in the past based on "future" information.
This is why Decentralized Distributed Exchanges for liquid assets is nearly impossible to implement.
I've read this whole thread and everything about XCP and still have not found details technical info on how the matching works, does it use "atomic transactions" ?
I have some ideas on solutions, PM if interested.. im a 15 year high frequency trading C++ coders. cheers
Hello, not sure if I can help but I've made some trades on the DEX.
Actually I've encountered a simultaneous trade with someone else (within the same block) he was first and since he took the whole order I end up with an unfilled buy order. I think that your are sure of your position as soon as the block is mined (and as long as there is no fork in BTC, which is quite rare)
About the latency arbitrages you're talking about, I have no clue but I'm really interested about this possibility and how to avoid it.
I've also red that DEXes are
not (and will probably never be) suited for HFT (I remember Vitalik saying that somewhere in this thread) I have no trading vocabulary but I see the DEX as a low frequency (10m) trading engine. Which is already quite a nice innovation !