BSIP: 0033 Title: Maker Orders With Better Prices Take Precedence Author: Abit More Status: Draft Type: Protocol Created: 2018-02-17 Discussion: https://github.com/bitshares/bitshares-core/issues/625 Replaces: - Worker: To be done # Abstract Currently, when matching taker limit orders with maker limit orders, the maker limit orders with better prices will always be matched first. For example, if trader A has a limit order selling 100 BTS at 0.1 USD per BTS, trader B has a limit order selling 100 BTS at 0.09 USD per BTS, which means B's limit order has a better price for the opposite side to buy. Now if trader C placed an order that buys 10 BTS at 0.105 USD per BTS, B's limit order will take precedence, A's limit order won't be matched. However, when there are margin call orders in the market which have met the requirements that to be matched, they always take precedence over limit orders on the same side, no matter whether the limit orders provided better price. For example, if trader A's margin call order is selling 100 BTS at no less than 0.1 USD per BTS, trader B has a limit order selling 100 BTS at 0.09 USD per BTS, which means B's limit order has a better price for the opposite side to buy. Now if trader C placed an order that buys 10 BTS at 0.105 USD per BTS, A's margin call order will take precedence, B's limit order won't be matched. That means C is forced to "buy high" when have chance to "buy low". This BSIP proposes a mechanism to change this behavior to: always match taker orders with maker orders with better prices first. # Motivation Make the exchange system more user-friendly. # Rational To attract more users, the system should be fair. It's common sense that, in a continuous trading market, new orders should be matched with the orders on the opposite side which offerred best prices first. # Specifications There is a parameter in price feed named MSSR, which stands for "maximum short squeeze ratio". Maker price of margin call orders is MSSP, which stands for "maximum short squeeze price", is calculated as `feed_price / ( 100% + MSSR )`. Note: `feed_price` here is in terms of debt/collateral, aka "how much debt per collateral". New limit order is being processed in `apply_order(...)` function of `database` class. Currently, in the function, firstly call orders will be checked and matched. After that, limit orders on the opposite side will be checked and matched. Need to change the logic to: * match the new limit order with limit orders on the opposite side whose price is below MSSP first, * if the new order is still there, match it with call orders, * if the new order is still there, match it with rest limit orders. # Discussion [to be added if any] # Summary for Shareholders [to be added if any] # Copyright This document is placed in the public domain. # See Also * https://github.com/bitshares/bitshares-core/issues/625 * https://bitsharestalk.org/index.php?topic=25926.0