Am I getting front ran by my CEX?
Am I getting front ran by my CEX?
I’ve been trading on a major centralized exchange for almost a year and I thought I knew all the ins and outs. Recently, my order got ‘magically’ front-run (or so I think), and the difference I paid was not small. Then, I started digging around some insider Telegram chats (I know, tinfoil hat time), and apparently, these huge exchanges can see your orders in real time and slip in their own bots. I’m still not sure this was the case, that’s why I won’t name the CEX just yet, but the numbers simply don’t add up…
So are we just stuck simply handing our profits to these platforms? Because it sure feels like they’ve got a system set up to nickel-and-dime traders to death. Trading fees alone can eat away your profits, but it seems even that is not enough anymore.
Some folks are telling me to check out “encrypted” or “private” exchanges, where you can hide your order data from prying bots but I’m very skeptical. Are they any better, or is this just more crypto marketing BS?
Would love to hear from anyone who’s looked behind the curtain on this. Am I overreacting, or is everyone else just accepting they’re being bled dry?
was in a similar situation but it’s never easy to figure out what happened after the trade is complete. Most orderbooks on CEXes are organized and fully run by bots so it could be one of two things – either the orderbook was so thin and I didn’t notice, or the bot just removed the order just moments after I placed my trade.
I know it was my fault for not placing a limit order, but it felt like there was no need for it.