When I see a big market with lots of movement, I quite often place lots of small limit orders above and below the current probability, so that if the market wiggles, I make a small profit. For example, if the market is at 50%, I place an order at 49% for 49 mana, one at 51% for 49 mana, and if they are both filled, they cancel out and I ended up spending 98 mana for a 100 mana payout.

If it goes to plan, this is obviously good for me. Free mana! Sometimes it doesn't go to plan, and the market just goes in one direction and stays there, which means I bought a load of mana in the wrong direction which never gets cancelled out. That's obviously bad for me. (The whole thing also takes quite a bit of time to place and replenish the limit orders, so it's not exactly free mana for a few reasons...)

This poll isn't asking about whether it's good or bad for me, but whether it's unethical, or bad for the community, or selfish, or something along those lines.

Arguments for unethical:

• I profit without contributing to making the prediction more accurate.

• I act as a parasite on other people wiggling the market.

Arguments for ethical:

• I make the market more liquid, in that if somebody wants to make a big bet, they won't move the market so much; they bet (against me) at a more favourable rate than they would have had otherwise

  • This is good for those who want to make big bets because they get a better rate.

  • It is also good for the community because a less wiggly market is a more useful way of seeing overall trends.

Feel free to make further arguments in the comments.