Post
Topic
Board Bitcoin Discussion
Re: Dark pools - how do they work?
by
ByteCoin
on 29/04/2011, 12:55:41 UTC
Hey,

I want to add dark pools to Britcoin. How do the dark pools on MtGox work? They also have 'dark pool with normal' - what's that?


Some people don't want their bid/asks to show publicly for various reasons. They could write a bot that polls mtgox to monitor the price and then post their bid/asks accordingly. This polling would be a strain on the mtgox website so mtgox implements dark pools to provide the same functionality in situ.

Whether dark pool users should trust mtgox is an interesting question. I imagine there are arbitrage opportunities for mtgox based on the fact that mtgox can re-order incoming currency transactions and make his own dark pool trades which he says are other people's dark pool trades. This would be hard to detect and very lucrative.

ByteCoin