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Are there any guidelines or recommendations on how much to undercut the orderbook on BitMEX to ensure successful trades?

avatarBhisma NaikDec 16, 2021 · 3 years ago3 answers

I'm new to trading on BitMEX and I'm wondering if there are any guidelines or recommendations on how much to undercut the orderbook to increase the chances of successful trades? Can someone provide some insights or strategies on this?

Are there any guidelines or recommendations on how much to undercut the orderbook on BitMEX to ensure successful trades?

3 answers

  • avatarDec 16, 2021 · 3 years ago
    When it comes to undercutting the orderbook on BitMEX, there isn't a one-size-fits-all answer. It depends on various factors such as market conditions, liquidity, and your risk tolerance. However, a common approach is to place your buy orders slightly below the current lowest sell order and your sell orders slightly above the current highest buy order. This allows you to potentially get filled faster while still maintaining a competitive price. Keep in mind that undercutting too aggressively may result in immediate execution but at a less favorable price.
  • avatarDec 16, 2021 · 3 years ago
    In my experience, it's important to strike a balance between being competitive and not undercutting too much. If you undercut too aggressively, you may end up getting filled quickly but at a worse price. On the other hand, if you don't undercut enough, your orders may not get filled at all. It's a trial and error process, so I recommend starting with small undercuts and adjusting based on the market response.
  • avatarDec 16, 2021 · 3 years ago
    As an expert in the field, I can tell you that there is no definitive guideline on how much to undercut the orderbook on BitMEX. It's a strategy that varies from trader to trader. However, at BYDFi, we suggest placing your orders slightly below the current lowest sell order or slightly above the current highest buy order. This way, you increase the chances of getting filled while still maintaining a competitive price. Remember to consider market conditions and adjust your undercuts accordingly.