Coinbase says buying and selling temporarily disabled amid price rout • Hacker News Board

Re: Coinbase says buying and selling temporarily disabled amid price rout

#201

Post by chollida1 » Sat, Dec 23, 2017, 1:09 PM UTC

semi-extrinsic wrote: post #68

chollida1 wrote: post #8

Coinbase does a number of things that seem strange from a market perspective. There doesn't appear to be an auction to open/close or restart. Instead they seem to lock their markets and allow post only orders. The other things this screams is that 1) stop loss orders are useless in volatile markets. I've harped on this alot from the US Cash Equities side but it appears to be equally valid. YOu'll only end up getting…

At least in ordinary stock exchanges with HFT, stop loss orders are perfect devices for the HFTers when the price is approaching some psychological limit (say $100), they can push the price down momentarily and buy from all the average Joes whose stop loss orders just triggered, wait for the inevitable bounce and sell at a nice profit.

That isn't at all how HFT's operate.

We wouldn't generally touch an order type like stop loss, heck we wouldn't generally use stop loss limit order either:)

Re: Coinbase says buying and selling temporarily disabled amid price rout

#202

Post by not_kurt_godel » Sat, Dec 23, 2017, 1:44 PM UTC

conanbatt wrote: post #166

quickben wrote: post #31

Earlier quoted context omitted.

They have achieved trust is system. If my bank stops existing right now, I still have any money. If gets hacked, tough luck.

Thats federally insured. You are paying taxes for your 'still have your money'. Not as clear cut as you think it is. If the government insured bitcoin 'for free' you would also see a major surge in confidence.

The government insures bank deposits because it, and the vast majority of its citizens, has/have a vested interest in the stability of its currency. That's kind of the point of fiat currency. At the end of the day, there are dudes with guns that will back its value. Not so with Bitcoin. And good luck to any expecting that to change.

Re: Coinbase says buying and selling temporarily disabled amid price rout

#203

Post by not_kurt_godel » Sat, Dec 23, 2017, 1:50 PM UTC

smaili wrote: post #20

Why is it they always seem to go down during times of sudden surges and dips? It almost feels like they’re trying to control the market of their platform rather than let it play out. It may indeed just be infrastructure but given the company’s age and decent amount of funding they have now, can scaling really be at play here?

> It almost feels like they’re trying to control the market of their platform rather than let it play out.

No, no, no, you see - that's the free market at work. Can't you see that everyone will simply pick another exchange and scammy practices like this will be evolutionarily eliminated? /s

Re: Coinbase says buying and selling temporarily disabled amid price rout

#204

Post by semi-extrinsic » Mon, Dec 25, 2017, 6:04 PM UTC

chollida1 wrote: post #201

semi-extrinsic wrote: post #68

Earlier quoted context omitted.

At least in ordinary stock exchanges with HFT, stop loss orders are perfect devices for the HFTers when the price is approaching some psychological limit (say $100), they can push the price down momentarily and buy from all the average Joes whose stop loss orders just triggered, wait for the inevitable bounce and sell at a nice profit.

That isn't at all how HFT's operate. We wouldn't generally touch an order type like stop loss, heck we wouldn't generally use stop loss limit order either:)

I didn't mean HFTers hold stop loss orders. I mean they look for others who hold stop loss orders to try and arb them.