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RE: How to Improve the Internal Market - Steem/SBD - With Better/Fairer Liquidity Rewards and Implied Prices...

in #internal-market8 years ago

As ever you explain it beautifully; I don't really get trading on a deep level, however what you say seems to make sense.

Did you look at the teeter totter article I posted on your last article on this subject? What I'm driving at is; do you think that liquidity will completely fix the internal market or is this just the easiest, fastest fix?

Cg

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I did read that article your refer to. I posted this as a reply;

I have read it, and the main assumption in this article is completely false IMO.

The only thing that is happening is, some user working orders on the internal market are giving away edge. These users want to sell Steem, they are working an order on the internal market to do so. The market move dramatically on the external market so that, they could get a better price elsewhere, a middle man steps in and takes profit, and matches the sellers request

The Arbitator doesn't add to selling volume, they just match volume that is already there.

Let me know if that answers your question. If not, I will happily post something more comprehensive... I am an Oil Trader (who also plays Arbitrage games) by day, so this is something I like to think I know about..

So, answering your question regarding complete fix/fastest fix? I would say that, the internal market doesn't need fixing, it's just needs more volume to improve. More volume would 'close the loop' on the Steem Economic System allowing users to do every action/transaction efficiently except Exchange Steem or SBD for Bitcoin.

It's silly that users need to Transfer Steem to an External Exchange to Exchange for Steem Dollars, in order to get a better price.

I hope that helps, let me know if you would like me to go into more detail, I could certainly simplify further..

Hi @hisnameisollie, thanks for your reply, I'm sorry I didn't see the other one. OK, well it's good to get an opinion from an experienced trader. So in other words we don't need a delay in SBD or the internal market to close, it's simply a matter of volume, and rewards would fix that?

Cg

No problem @cryptogee

Yep, that's what I think, and that what exchanges all around the world do every time they launch a new product (tradeable asset class).

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