[bisq-network/forum] Pegging order exchange rate to "market price" opens the maker to abuse (#9)

[menkaur]

There probably is a good reason why this option was added to Bisq, but also there is a very good reason why none of the standard exchanges ever does something like this.

Let's assume that the maker is a buyer for this explanation

First of all,  "market price" +- 2% means that anyone can sell to to the maker at whatever the market price is +2%. Correct me if i'm wrong. If there are multiple "market price" providers, the taker is free to choose the price he likes best on top of that

Another issue is that the "market price" is really easy to manipulate, especially on thin markets. You just have to figure out the algorithm that the "market price" providers use to get their numbers (usually some sort of close, tick value or top bid/ask, or some sort of moving average in the worst case). After that, the taker can get very nice discounts on taking the orders pegged to the "market price".

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