Quote from: ByteCoin on April 29, 2011, 12:55:41 PM

Quote from: genjix on April 29, 2011, 11:40:17 AM

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

these are very valid points.