Cryptocurrency
Binance Will Soon Reward Market Makers for Providing Futures Liquidity
As reported by Coindesk, “Cryptocurrency exchange Binance is adjusting its fee structure to get market makers to add liquidity on its futures platform. “Under the revised Binance Futures Market Maker Program, market makers will receive a negative fee for selected trading pairs, according to an official announcement on Monday. A ‘market maker’ is a user […]
As reported by Coindesk, “Cryptocurrency exchange Binance is adjusting its fee structure to get market makers to add liquidity on its futures platform.
“Under the revised Binance Futures Market Maker Program, market makers will receive a negative fee for selected trading pairs, according to an official announcement on Monday. A ‘market maker’ is a user who adds liquidity, or buying and selling limit orders in which the limit price is below/above the current market price, by placing a trade in the order book. A ‘market taker’ is the one who takes liquidity off the market by filling a trade already placed.
“Exchanges generally try to enhance liquidity on their platforms by offering makers lower fees compared to those offered to takers while filling an order. Binance, however, has upped the ante by announcing what’s effectively a reward for placing market-making trades on ‘select’ pairs.
“Binance hasn’t yet disclosed details relating to the negative fee structure. To join the program, market makers must have 30-day trading volumes in excess of 1,000 BTC on Binance, and have ‘quality market maker strategies,’ the post says. The exchange will also accept proposals with evidence of similar trading volumes on other platforms…”