Binance: Market Maker Program is Launched
As it was announced in the post from Sept. 30th, Binance, being the main cryptocurrency exchange at press time, a market maker program was launched after substantial time of work on the project.
In the announcement it was said that the users with monthly trading amount over 1,000 BTC can join at once. Also this option is opened for the traders, who are able to score this amount in the nearest future. However, if the user has quality market making strategy, he can participate with no other conditions.
According to Binance the main goal of the project is to increase liquidity to the currency exchange procedure.
More Liquidity, More Profit
As the company representatives announced, the program has its limits. Technically it stays limited to the spot markets of the trading platform on a “market maker pair list”. The updates of the list will be held from time to time and announced beforehand.
Every market maker will receive a certain amount of score points. This amount will be based and calculated taking into account the maker’s performance on different markets. The exchange will calculate the fees depending on the amount of score points.
As it was found out the score amount will be calculated based on a number of values, such as maker volumes, total order sizes, bid/offer spread, order duration and a lot of other points, including weight adjustment on specific pairs.
The trading volumes of the applicants will be required to be proven, as the Binance representatives say. The ways to prove the trading volumes include talking with key account manager and providing Binance with the corresponding data from another exchange.
In April this year crypto exchange OKEx, being a competing one to Binance, also made an announcement that it is going to launch its market maker program. The participants will get lower trading fees. However, all transaction costs are to be reduced for them. So the market maker program is launched not jus by Binance, that gives traders more possibilities and advantages.