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Does BitMEX have any Market Makers?

  • Updated

Yes, BitMEX has market makers. Professional liquidity providers continuously quote bid and ask prices on BitMEX contracts, maintaining tight spreads and deep order books. BitMEX operates a Designated Market Maker Programme that offers qualified participants trading benefits and fee incentives in exchange for meeting quoting obligations.

 

What Are Market Makers and Why Do They Matter?

Market makers are professional trading firms or individuals that continuously place both buy and sell orders on an exchange. They provide liquidity by always being willing to trade, ensuring other participants can buy or sell quickly without excessive slippage.

Market makers earn the bid-ask spread as compensation. They buy at the bid and sell at the ask, capturing the difference. In exchange, they take on the risk of holding inventory that may move against them.

 

Why market makers matter for traders

  • Tighter spreads: Active market makers compete with each other, narrowing the gap between the best bid and best ask. This reduces execution costs for all traders.
  • Deeper order books: Market makers place orders across multiple price levels, increasing the total quantity available near the current price. This means larger orders can execute with less price impact.
  • More consistent pricing: Continuous quoting prevents large gaps in the order book and reduces the likelihood of erratic price movements caused by thin liquidity.

Without market makers, order books would be sparse. Traders would face wider spreads, higher slippage, and less reliable execution. Market makers are a structural component of any well-functioning derivatives exchange.

 

Does BitMEX Have a Designated Market Maker Programme?

Yes. BitMEX operates a Designated Market Maker Programme that incentivises professional liquidity providers to maintain continuous quotes on BitMEX contracts.

Participants in the programme receive benefits in exchange for meeting specific quoting obligations. These obligations typically include maintaining bid and ask orders within a defined spread and at a minimum size for a specified percentage of trading hours.

 

What are the benefits of being a Market Maker?

What are the benefits of being a Market Maker?

  1. Market Makers on BitMEX receive several advantages, including:
  2. Competitive Maker rebates & Reduced Taker fees
  3. Enhanced access to the trading engine
  4. Collateral support of up to 1,000,000 USDT
  5. Cash rebate of up to 105,000 USDT per month

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