Aug 24, 2020
An Introduction to Market Making
Bitcoin futures trading has exploded in popularity in recent years. The excitement by using more than 50x leverage and being much cheaper than margin trading, and due to futures structure, they offer insanely high leverage, low fees, and potentially several magnitudes more profit, which has led to the explosion of the cryptocurrency futures market. Not only are there future markets for bitcoin but also other cryptocurrencies like ethereum.
However, there is nothing easy about trading and predicting the price of bitcoin or other cryptocurrencies. If you don’t believe me, ask Ari Paul, who bet a million dollars in 2017, that bitcoin would reach $50k before December 2018. He did this by buying “call options.” Whoever was on the other side had a good laugh enjoying the premium.
Make no mistake about it. There is much money to be made with trading cryptocurrency. There are many different approaches, and one of them is market-making.
Market makers
When someone wants to buy or sell an asset, they need to trade on an exchange where buyers and sellers meet in the order book. The price they can purchase or sell it depends on the supply and demand of the asset at the moment.
bid = price to buy
ask = price to sell
maker orders = an order that adds liquidity to the order book by using limit orders. A maker order is not executed instantly, it’s placed in the order book.
taker orders = an order that removes liquidity from the order book by using a market order. A taker order is an order that is executed instantly against other orders
The difference between the bid and ask in the order book is called the spread. If there are limited counterparties to trade with, it may not be possible to enter a large or decent size position. The asset is illiquid, to provide liquidity, exchanges ask market makers to offer a bid-ask spread to the market continuously. According to the standard definition, market makers don’t have an opinion on whatever the price should go up or down. They make money on the difference called the spread. When they take a position, they take the risk of getting run over by the market. They will try to find a way to offset that risk by, for example, hedging the position with a different asset or futures contract. A market maker must understand the asset they are making markets in and be familiar with similar financial products/assets.
To provide competitive quotes on multiple exchanges and multiple products, they developed trading bots with algorithms.
As an exchange, their most significant defense against competitors is the liquidity that they provide for traders to enter or exit positions without much slippage quickly. Market makers provide liquidity. A market maker trades 24/7; that’s the service they provide to the exchanges.
Exchanges incentivize traders by providing lower fees for limit orders compared to market orders.
Market makers get incentivized for providing liquidity by the spread. Still, they can even get compensated for having their limit order filled; this compensation is what we call a rebate.
Bitmex once held a small seminar about market-making years ago. I try to go through it but with more up to date examples and much more extra information. Like mentioned before, a few of the exchanges that compensate market makers but also any other trader on their platform for limit orders are Bitmex, Deribit, BTSE, and Bybit. They are well-known exchanges that provide this rebate on limit orders getting filled. There’s no exclusive contract or deal provided. Even a person with a regular account gets paid if their limit order hits on these exchanges.
By providing limit-orders on the order book, you provide liquidity. It makes traders see they can enter and exit their position while not driving the price itself up or down, which has a negative effect on their PNL. You can consider yourself a market maker or, as a retail trader, you could consider becoming one by using limit orders on both sides of the book and trying to profit off the spread and rebate that certain exchanges offer. Note that not all exchanges provide this rebate for every trader, but only for accounts that generate enough volume or volume with a special program, you might have to contact them.
When your limit order rests in the book, and some other trader comes in and hits to lift your quote, Bitmex, Deribit, Interdax, and Bybit pay you 2.5 basis points or 0.025% of the value of that order in BTC (1 basis point on BTSE in dollars). That will be available immediately in your account, and this is what we call receiving a rebate for your limit order. This incentivizes them even more to place limit orders, which leads to better liquidity. On the other hand, the traders, hitting your limit order with their market order, pays 7.5 basis points with a privilege (6 basis points on BTSE).
Bitmex, Deribit, Interdax, and Bybit earn 5 basis points on every trade executed on the exchange, and BTSE earns 4.5 basis points.
Market makers want the exchange to a market itself sufficiently that enough traders are willing to take the spread and how many people the exchange can bring in who are eager to cross that spread with their orders.
Bitcoin futures priced
Futures contracts offer risk mitigation and hedging possibilities without the need to have a bitcoin spot position perse.
Exchange introduces new bitcoin contracts that have expiry dates every quarter in the future.
As new contracts are launched, market makers set an initial price for those contracts. As momentum gains, the demand and supply mechanism takes precedence to determine the price of the futures.
All futures contracts derive their value from their underlying asset. Bitcoin futures prices depend on bitcoin spot prices, and any move in the latter affects the former, which leads to the prices moving in sync with each other, but there is a difference between them.
Calculating the futures price from the spot price in :
Futures Price = Spot price ∗(1+rf−d)
rf = risk-free rate on annual basis, and d = dividendThis formula needs customization for two points for bitcoin.
- The changes for risk-free rate from an annual to a daily basis.
- There is no dividend in bitcoin, “d” should be removed.
Bitcoin Futures Price = bitcoin Spot price∗[1+rf∗(365x)]
x = number of days to expiry.BTC is a cryptocurrency that is different from fiat currencies like the US Dollar, Euro, or British Pounds. By holding fiat currency, there is an opportunity to earn a risk-free rate. The idea of a risk-free rate is based on the assumption that the government won’t default, which is usually a regular assumption even for you and me (assuming you do hold some fiat and have a bank account, etc.).
There is also a possibility of lending money.
It would be more natural to buy BTC for a spot price and hedge it by shorting the back-month future.
The price of the derivative depends on the price of the underlying asset, assuming the no-arbitrage rule and the return must be the same. We can extract the risk-free return from the futures market.
It would be an idea to buy BTC spot and hedge it by shorting the back-month futures since those prices are usually higher than the spot price, and slowly time decay kicks in and price move slowly to BTC spot price.
We will go over this in the “Basis trading” paragraph.
Another option is instead of going long BTC spot, we go long the front-month contract and short the back-month contract. So, for example, long on the September futures contracts and short on the December futures contracts.
Now we are consequently hedged against any decline of the BTC price. The risk-free rate is positive if the futures are in contango but negative if the futures are in backwardation.
Another possibility of obtaining a “risk-free” rate is by trying to profit from the perpetual swap's funding rate.
Another option is to lend your BTC to Bitfinex, Binance, or Kucoin and receive interest. Lending out your assets on a centralized exchange is also risk fully since you rely on a third party.
On the other hand, the returns are much higher than bank deposits or government bonds.
Fee structure multiple exchanges
The fees for cryptocurrency exchanges are confusing since multiple factors come at play for most exchanges. On most exchanges, there’s no fixed fee.
The fees depend if someone is a “maker” or “taker.” For being a market, Lower fees charged (limit orders). Higher fees charged when someone is the taker, this person uses market orders.
Factors that might be in play are
- Volume generated by an account
- Leverage (Some exchanges charge higher fees when leverage is higher)
- Market Maker/VIP Programs (special deals)
- Exchange tokens (For example, BNB, FTT, BTSE, LEO, OKB, HBT)
- Spot or futures contracts (for trading spot, usually higher fees are charged)
- Signed up with a referral link
When maker fees show negative, you get paid for limit orders getting filled or how we call it, the rebate. You can Google every exchange name and its fee structure. Keep in mind that using someone’s referral link can make a huge difference.
Delta neutral
Over time, a market-maker hopes to make at least half of the bid/ask spread he’s quoting. Done correctly without any strange events, a market maker can make a consistent income by market-making.
The great thing about the cryptocurrency market is that these traders are shit scared but also high on life. They place market orders and don’t have the patience to wait in fear of their limit order, possibly not hit to either enter due to fear of missing out or the chance panic exit.
Traders submitting market orders is precisely what market makers want. These traders are willing to pay taker fees and also not willing to wait for a better price. These traders using market orders are price-insensitive to the size of the input into the market. The market maker will get his limit order filled, especially during high volatility. The cryptocurrency market has a lot of greedy and scared traders. Even if the spread is 1 cent wide, traders are willing to use market order without a second thought because crypto markets can move so fast in a short period.
For market-making, the market maker needs to stay delta-neutral or close to being delta-neutral. Delta is your exposure to the underlying asset you’re trading. For BTCUSD products, your delta is the amount of BTC you’re exposing to the market. If you’re long 10 deltas of BTC and the market moves 10%, you either gain or lose 1 BTC.
Inverse vs. Linear
There’s a difference between linear futures contracts and inverse futures contracts.
I wrote an article about inverse futures contracts a year ago.
You should read it. It’s worth it but let’s go over it again. On exchanges like Bitmex, Deribit, Interdax, and Bybit (You can choose to pick either linear or futures on Bybit), you trade inverse futures contracts.
On exchanges such as FTX, Binance futures, BTSE, you trade linear futures contracts. These are the “simpler” easier to understand futures contracts compared to inverse futures contracts.
Now let’s go over my old article again about inverse futures contracts.
Short inverse
Let’s say you would open a long position with 1x leverage (unleveraged). You would expect only to get margin called if the price drops to 0 (just like with linear markets), but this is not the case with inverse futures contracts. You will be margin called when the price drops lower than 50%
Why does that happen? It’s because you are not trading BTC/USD but USD/BTC. Which is vital to understand. When you long USD/BTC, you are short inverse.
On inverse USD/BTC, it’s quoted as BTC/USD, and the chart also is shown as BTC/USD, which is confusing for many traders.
Let’s say you long at $16k with 1x leverage with 16000 contracts and 1 contract being worth $1, which is equal to 1 BTC, and you can calculate your profit and loss like this. For the sake of simplicity, I leave out fees.
ep = entry price ex = exit price N = number of contractsPNL = (1/ep - 1/ex) * N
PNL = (1/16000 - 1/8000) * 16000 = -1Your loss is -1 or -1 BTC, meaning your collateral for this long is gone. Liquidation can be earlier. Make sure to use Bitmex calculator to calculate it.
Long inverse
When you long with 1x leverage on the inverse, you are margin called if the price drops more than 50%. Basically, if you are long on an inverse futures contract, you are not using 1x leverage but actually on 2x leverage. If we use 5x leverage on inverse futures contracts, the long position would be 6x leverage in the linear futures contract in terms of USD. The leverage is leverage+1.
A trader goes long 100 XBT of XBTUSD at 600 USD. He is long 100 XBT * 600 USD = 60 000 contracts. A few days later, the price of the contract increases to 700 USD
The trader’s profit will be:
60 000 * 1 * (1/600 - 1/700) = 14.286 XBTIf the price had dropped to 500 USD
the trader’s loss would have been:
60 000 * 1 * (1/600 - 1/500) = -20 XBTThe loss is greater because of the inverse and non-linear nature of the contract. Conversely, if the trader was short then the trader’s profit would be greater if the price moved down than the loss if it moved up.
Linear
FTX exchange wrote about this too in their June 2020 digest
blog.ftx.com/monthly-digest/ftx-june-digest.pdf
Let’s go over that real quick and summarize it. Credits to https://twitter.com/Nibbio_HK
In traditional markets, most of the instruments are actually “linear” contracts, which means that the exposure, i.e., the delta, is a constant. If one gets a long 1 “linear” contract on BTC/USD, he will have a delta of 1, regardless of the BTC/USD price. The PNL for such a position is realized in USD: 1 x (Exit Price-Entry Price).
Here the “inverse” contract enters the fray. It is still quoted with a BTC/USD price, but the contract quantity is now in USD instead of BTC. The trader gets a constant Dollar delta, but a variable Bitcoin delta equals to
His position delta is now a function of the spot. The “inverse” contract PNL formula is:
PNL is realized in BTC, which avoids interaction with USD.
Being long “inverse” gives negative gamma, which means that hedging the delta will cost money (buy delta at a higher price, sell delta at a lower price). Reciprocally, being short “inverse” will give you a positive gamma (buying delta at a lower price and selling delta at a higher price).
In conclusion, long “Inverse” is riskier than being “short”. As the price goes down, the position accumulates more and more delta and puts the trader at a greater liquidation risk. The USD's value stays constant, but the value of the BTC collateral posted goes down as BTC/USD goes down, therefore increasing the liquidation risk.
^ Which is what I tried to explain in my medium article about inverse futures contracts
Fair price
A fair price will differ depending on different traders and how they calculate it. It’s essential for a currency futures contract, and the fair price is a variant of interest rate parity. Look at the underlying index price, which is what you are trading. For BTC Dollar, you’re trading the bitcoin dollar exchange rate. It will have an index of different exchanges that compromise how that product will settle.
For Deribit
Once you have your fair price that acts as your mid-price, around that mid-price, you put your spread and come up with bid and ask.
For market-making, determining your spread is essential. If your spread is too wide on the exchange, fewer traders are willing to trade against you. If you’re a risk-taker as a market maker and your spread is tight, there’s a high probability you’re going to get run over, but on the upside, you’re getting many trades, and you will earn a lot of 2.5 basis points rebates.
By being a market maker, your spread is composing the volatility of the underlying asset you’re quoting and the cost to stay hedged. If he’s selling a derivative on Bitmex, he’s buying an underlying somewhere else. At all times, the market marker tries to be delta neutral or close to being delta neutral. Some will have some risk tolerance, for example, willing to long 10 BTC and short ETH before starting to hedge. This hedging cost is a combo of the bid-ask spread of the underlying asset and the commissions to trade. When you enter the spot market where you’re going to be hedging your underlying exposure, those commissions can become expensive quickly. Part of the optimization of the market maker trading bot is the algorithm using to hedge the underlying exposure.
There are market maker programs with contracts that require you to be within 1–2 basis points away from the current order on some exchanges.
The distance of quoting from a current offer/ask is an “urgency.” If you’re not signed with an exchange to always be within some current offer, you will have some flexibility. A different way to think of this is that, for example, you only trade levels and distribute your orders from best offer to your take profit/entry price and also have some on the downside to average in a position.
Post-Only
Post-Only orders (Participate do not initiate), the post-only function ensures that all your orders will be limit orders; they always enter the order book without being instantly matched. If the order matches, the trading engine depending on the exchange, would either prevent the order from being executed like on Bitmex or adjust the order to enter the order book at the next best possible price like on Deribit.
A post-only order guarantees you’re a maker offering bids/asks and not paying taker fees. Many exchanges provide a post-only option to prevent orders from being executed as market orders and pay taker fees.
Skew
A market maker is usually wrong, and the market is always right. If you’re going short as a market maker, the wrong strategy is not to sell more at the same price. The better approach is to raise your asks at a higher price. If someone is continuously hitting you on the bid side, it doesn’t mean you’re a hotshot and that the market is going up. It’s better to lower your price on the bid side. In the cryptocurrency market, those with insider information will trade against you as a market maker well before the market either gap lower or spikes higher before the information is public. The market maker needs to have a skewing mechanism whereby you adjust your quote's price relative to your net position on the exchange.
One other concept of skewing is hedging. The more you hedge, the less money you make because of trading fees. The goal is to use Skew to make your trade as attractive as possible to the other side to flat enough your position before you need to go to the underlying market and hedge your delta. For each full-size transaction, you skew your quotes half the spread. Then not only do you make half of your spread, but you also make a rebate on both sides of the order.
Market makers love low volatility because it creates an optimal condition to don’t do any hedging. The market is ranging, there are constant buyers and sellers, and nobody has a clear idea of where the market is going. Market makers love low volatile choppy markets because traders aren’t sure which way it will break out. They go in and out of positions and continuously change their bias and often use market orders to not miss out on the breakout. The market makers earn fees by traders, consistently hitting their bids and asking, profiting from the spread and rebate.
Market makers don’t like high volatile trending markets moving in one direction, either up or down, for example, during the block halving event. During that event, high volatility can happen. When the price, for example, drops 10% or more than a thousand dollars, that’s the moment you as a market maker will be in a tight spot. Market makers can also have days of drawdowns. If you, as a market maker, quote during that volatile move, you could get run over.
The hope is that the market revert and the market calm down and becomes choppy again. You make back that loss and more in a choppy market. How much delta or risk tolerance a market maker has differs from one to the other. As a market maker, if you take more risk, less/no hedging, it will lead to potentially more profits.
Covid-19 flu season
As the COVID-19 flu season broke out and everyone lost their shit on March 13, 2020, the markets had their runs, and millions of people saw their investment portfolios getting hammered. Bulls wasted valuable money like juice world at a strip club, and bears in the stock market had their chance after years and years and years of waiting for their time to shine. A perpetual battle between optimists and pessimists.
BTC has been in a freefall for hours that same day, and there were no signs of stopping. Liquidations and millions of dollars worth of BTC splattered on the board. BTC freefalling below $5000, and what could be done?
FTX wrote about their experience in a June 2020 FTX monthly digest. Situations like that crash bring opportunities. While many traders got their skull smashed in, the army at FTX/Alemeda Research quant trading firm existing out of smooth brained millennials made a bet of a lifetime.
Math oriented people who spent their nights popping Adderall and researching futures, retracing trends with the Fibonacci sequence while applying set-theoretic equations to probabilistic subsets and “oh shit, he doesn’t have enough Adderal for tomorrow” find their way to become a quant trader/market maker like the quant traders at Alameda Research.
On that day, Friday the thirteenth, it looked like BTC would crash to 0 due to the cascading liquidations on Bitmex. What could the quant traders possibly do?
Buying a given derivative product has 3 crucial factors: How good is its premium, how much capital can be spared for its margin, and how close is liquidation. Bitcoin was moving 10% in 5 minutes routinely.
On exchanges where they don’t have funds, what’s the expected transfer time, and how many dollars might BTC or the other asset be worth it before funds arrive.
Should they long or short deltas at any given time?
Just as the horizon faded and all hope was lost, and it seemed like BTC would crash to 0, at some point, Bitmex, the biggest exchange, went down. Did Bitmex go down, or did Arthur Hayes pulled an “Abra-cadabra” by just pulling out the plug and make Bitmex go down on purpose, simulating the great circuit breaker you have in stocks? (He never stated this but claimed the servers went down, a lot of people are skeptical about that.)
After that, Alameda Research assumed that the market would fucking bounce off the moon, assuming customers would believe that the liquidations were over and predicted a momentum-like effect. BTC price went up, which defeat the need for those pending liquidations, which means the price would continue to go up.
Hours rolled by, millions at stake, balls of steel gripped by diamond hands, and the price did recover.
Basis market making
You could use a skew example as a straightforward model for purely position basis trading. Position basis trading is starting flat, 0 positions open on the exchange. You can either long or short, depending on the demand for contracts. You skew your quotes up and down, depending on your net position. You want to move your quotes high enough to get the other side to earn half of the spread, for traders or market makers with a small balance sheet, that might be very effective for market making.
If you have a more massive balance sheet and are willing to commit more capital to market-making, you can become a basis market maker.
Useful terms
Bid - buy price in the order book
Ask/Offer = sell price in te order bookDelta = The value of your position in either the home or foreign currencyTheta or Carry = Amount of money you can lose as time passes byBasis = futures price - spot p
Basis market maker meaning that you want to capture opportunities with your portfolio positive theta and or positive carry. For example, you will sell a futures contract at a higher price and buy the underlying spot.
Futures usually trade at a higher price.
Buy $2000 worth of BTC spot
Sell 2000 contracts XBTZ20 (December expiry) for example on Bitmex
Sell the remaining BTC at expiration of the december futuresI’ve tweeted this example before, and Nomad replied to someone for further explanation.
Sure the gains on a basis trade are your (futures px — spot px) — costs and generally held to expiry. If it behaves like a normal market, futures contracts should come in closure to spot price. If both are 1x, it doesn’t matter if one is losing as the other position acts as a hedge.
Another example is going net short on ETH on Bitmex at ETHUSDU20 and buy ethereum on Binance.
Once you’re net short on Bitmex, you can quote a bid on the other side because you can make money on the spread and rebate. You can quote this all day long. As time progresses, you’re quoting your bid/ask, and slowly the futures market is decaying. You’re making positive carry as time passes by and also making bid/ask spread by market-making on the exchange. As soon your position on Bitmex is flat, you drop your bid out.
If the contract is at a discount, in that case, only quote bids on Bitmex to buy contracts and short under the underlying exchange. A positive carry position, as the market trend upwards, you’re making money on the spread.
As a market maker, if you have a massive balance sheet, you can continuously do this. Retail cryptocurrency traders don’t think about balance sheets; they are thinking about the moon or doom. As a market maker, putting on a positive theta and still earning from the spread and rebate.
Front running
As a market maker, you can put in a bid, and someone else or a bot tries to front-run you by quoting the bid at a slightly higher price. That is how the bid to ask spread gets smaller because others try to beat you on speed or beat you with their balance sheet. Some can beat the market with their ability to predict how volatile the market will be. If one can anticipate low volatility, he can quote tighter in the market with perhaps less or no hedging.
All this information in this article was just some basics, but you can make it more complex in terms of how you calculate your quote, move your quote, and hedge. Also, how good are your execution algorithms on Bitmex, Deribit, FTX, OKEx, Huobi, Binance, BTSE, Poloniex, Kraken, and Bitstamp? Or does their API has a slow response with missing API calls? Many of your costs that you’re paying to depend on the spread and commissions on those exchanges. Study their maker-taker fee structures, how one exchange leads and others follow all to determine how you’re going to quote your price. Also, when the market is going to reverse and consider either hedge or not hedge, this can all become more complex. It’s all about earning form the spread by market-making consistently over time and receive a rebate on exchanges offering this.
Exchanges need enough liquidity to attract traders. A prominent trader or hedge fund, for example, can’t long or short BTC on a futures exchange by opening millions of dollars worth of contracts without moving the market. Especially not with the futures contracts with an expiry date, which is even less liquid than the perpetual swap. Exchanges need liquidity and have people hired with a financial background, not just good programmers without a financial education or experience.
Fee structure multiple exchanges continued
As mentioned before, the fees for most exchanges are different. Since I did not want to “bloat” the article by covering the fee schedule of the most popular exchanges and looking like a referral shill fest, I decided to save it for the last. However, You might find this data useful or can get yourself a link to save on fees you might not receive in the wild.
Bitmex
Futures
maker fees: -0.025% (rebate)
taker fees 0.075%10% discount for 6 months when using a referral link: https://www.bitmex.com/register/vhT2qm
Deribit
Futures
maker fees: -0.025% (rebate)
taker fees 0.075%10% discount for the first 6 months when using a referral link: https://www.deribit.com/reg-572.9826
Binance
For trading on Binance, multiple factors come to play. The fees are cheaper if you hold their exchange tokens called BNB, and no rebate on maker orders unless you created enough volume in 30 days and are in their market maker or the VIP program.
Without a special program, token discount applied or referral link applied:
Spot/Margin trading
maker fees: 0.1%
taker fees: 0.1%Futures
maker fees: 0%
taker fees 0.06%
A referral link could give a discount on trading fees. You can receive up to a 20% discount by “special” users on Binance who can choose to give such a discount: https://www.binance.com/en/register?ref=SUL1QNJK
Okex
For trading on Okex, multiple factors come to play. The fees are cheaper if you hold their exchange tokens called OKB and no rebate on maker orders unless you created enough volume in 30 days and are in their market maker or the VIP program.
Without a special program or token discount applied
Spot/Margin trading
maker fees: 0.1%
taker fees: 0.15%Futures
maker fees: 0.02%
taker fees 0.05%
Huobi
For trading on Huobi, multiple factors come to play. The fees are cheaper if you hold their exchange tokens called HBT and no rebate on maker orders unless you created enough volume in 30 days and are in their market maker or the VIP program.
Without a special program or token discount applied
Spot/Margin trading
maker fees: 0.2%
taker fees: 0.2%Futures
maker fees: 0.02%
taker fees 0.05%
Signup: https://www.huobi.com/en-us/topic/invited/?invite_code=mei86
Kucoin
For trading on Kucoin, multiple factors come to play. The fees are cheaper if you hold their exchange tokens called KCS and no rebate on maker orders unless you created enough volume in 30 days and are in their market maker or the VIP program.
Without a special program or token discount applied
Spot/Margin trading
maker fees: 0.1%
taker fees: 0.1%Futures
maker fees: 0%
taker fees 0.06%
Signup: https://www.kucoin.com/ucenter/signup?rcode=1su6c&lang=en_US
FTX
For trading on FTX, multiple factors come to play. The fees are cheaper if you hold their exchange tokens called FTT and no rebate on maker orders unless you created enough volume in 30 days and are in their market maker or the VIP program.
Without a special program, a token discount applied or referral link applied
Spot/Margin trading
maker fees: 0%
taker fees: 0.07%Futures
maker fees: 0%
taker fees 0.07%
A referral link can be used for a discount on trading fees. A 5% discount usually unless “special” FTX users give you a referral link can receive a 10% discount.
10% discount: https://ftx.com/#a=10percentDiscountOnFees
Bybit
Futures
maker fees: -0.025% (rebate)
taker fees 0.075%Signup: https://www.bybit.com/en-US?affiliate_id=6776&group_id=1653&group_type=1
BTSE
For trading on BTSE, multiple factors come to play. The fees are cheaper if you hold their exchange tokens called BTSE token and there are rebates for maker orders and fees get better if you fall under there market maker program.
https://support.btse.com/en/support/solutions/articles/43000064283-fees-and-transaction-limits
Spot/Margin trading
maker fees: 0.02%
taker fees: 0.07%Futures
maker fees: 0.02%
taker fees 0.07%
When using a referral link, you receive a 20% discount for the first 30 days and after that 10% discount: https://www.btse.com/ref?c=0Ze7BK
Interdax
Futures
maker fees: 0.025% (rebate)
taker fees -0.075%More medium articles?
If you are looking for more medium articles like this written by me, you can find them on my medium profile.
Also, leave a clap and or comment to get this article ranked higher. Share it on Twitter, Reddit, and other social media platforms.
Depending on the popularity of this article, I might do more articles about trading and market-making.
Few of my other trading articles you might be interested in (Do look at my profile since I won’t list them all)
End Part 1 about market making
