Achieve 'market maker' arbitrage strategy explanation through 0 maker fee!
0 maker fee refers to orders executed through limit orders having 0 fees. Currently, Binance offers a 0 maker fee for perpetual contracts on USDC! For example: entering a position with a limit order and exiting with a limit order for profit, regardless of the size of the order, there are no fees!
This gives us an arbitrage opportunity, even earning one point is pure profit, similar to the way 'market makers' engage in DOM trading, providing liquidity to earn the spread! Market makers essentially place limit orders on the order book to provide liquidity. They conduct high-frequency quantitative trading by obtaining DOM (Depth of Market) data through the exchange's API interface. Orders are executed (entry and exit) through limit orders, and their profit actually comes from the price difference (spread) between the buy 1 and sell 1 on the order book!
💰A more stable arbitrage strategy than moving bricks – “Simulated Market Maker Arbitrage.” Market makers actually provide liquidity quotes on the order book; they perform high-frequency quant trading using API interfaces to obtain DOM (Depth of Market) data. They only execute limit orders (pending orders), and their profits come from the price difference (spread) between the buy and sell prices. They then use market orders to match their pending orders on the order book, with almost zero risk. It’s more stable than moving bricks. Although each transaction yields very little profit, under high-frequency algorithms operating in milliseconds, executing millions of transactions in a single day can result in considerable profits! For us retail investors, we can actually simulate the market maker's strategy for arbitrage. After personal testing, it works perfectly! ✅Specific method: You can follow me for a live online session where I will unveil the details! #套利 #做市商 #交易策略分享 #机构行为 $ETH
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