Topic: Poloniex & maker-taker fees (Read 5181 times)

Duplicate, continue here: https://bitcointalksearch.org/topic/new-feature-of-poloniex-maker-taker-fee-schedule-1393298

overall this approach is to make more people place orders on the order book to create thicker order lines(walls) to help resistance and reduce price movements.

for instance

     sell               buy
421 - 0.1      0.1 - 417
422 - 0.1      0.1 - 416

now if someone wanted to sell 0.2, then that buy wall would disappear instantly
now if someone wanted to buy 0.2, then that sell wall would disappear instantly
but by placing an order(maker) instead of taking

     sell               buy
420 - 0.2      0.2 - 418
421 - 0.1      0.1 - 417
422 - 0.1      0.1 - 416

the order lines are stronger and the spread is reduced. which helps reduce volatility not just in the few seconds due to the spread of buys and sells, where price could go up to 422 and down to 416 with just 2 takers using 0.2each. but now, if 2 new takers with 0.2each came along, then the price would only move 420-418 or would require 0.4 for each taker to make the price swing 422-216.

knowing takers are going to see it costs more to take then it does to make. they are less likely to try eating up (taking) the whole buy wall and instead place an order as a sell wall
knowing takers are going to see it costs more to take then it does to make. they are less likely to try eating up (taking) the whole sell wall and instead place an order as a buy wall

yes
the first partial one happens instantly. and shows up in trade history
the remainder of funds sit on the orderbook until someone else eats (takes) the amount from the order book, so shows as a separate trade on the trade history.

you mean leaving fiat and coin in there, or just in and out trading?

i like your forum identity.

I wonder how they treat an order that starts off with a partial fill as a taker, and subsequently completed with a partial fill as a maker. Do they treat it as 2 separate trades?

I think it is pretty much a good sign, meaning they are counting on the increased volume to make up for the slightly lower fees made off of big traders. Most trades are probably skimming the waves and only making a small percentage off each individual trade, therefore lowering the fees for this type of trading will encourage more people to participate. This way someone can provide more liquidity to the market, because they do not have to wait until their position moves x percent to cover fees before making a trade, they can trade more frequently.

What do you use Poloniex for?

Yes this is what they say on the website:

Every trade occurs between two parties: the maker, whose order exists on the order book prior to the trade, and the taker, who places the order that matches (or "takes") the maker's order. Makers are so named because their orders make the liquidity in a market. Takers are the ones who remove this liquidity by matching makers' orders with their own.

The maker-taker model encourages market liquidity by rewarding the makers of that liquidity with a fee discount. It also results in a tighter market spread due to the increased incentive for makers to outbid each other. The higher fee that the taker pays is usually offset by the better prices this tighter spread provides.

I think Poloniex makes a lot of money in a day, they have to if u just look on the total volume on there is:

60-70k at the moment, and i have see days that only ethereum does 80k volume on there.

so lets say they do 100k volume a day there and they take 0.2% fee that is 200 Bitcoin a day only on the Bitcoin trades.

So they make around 80000$ dollars a day and 2.2 million monthly and that is still a low calculation, so I don't think they are really strong economically.

so your interpretation is that the business is in a strong position?

i'm just trying to do a health check on various exchanges with available data.

Actually the trading fees are reduced and will attract more traders.
http://coinour.com/index.php/poloniex-lowers-the-fees-for-high-volume-traders-march-10-2016/

Poloniex has tweeted that it will be introducing maker-taker fees from 20th March.

Could this indicate anything about its economic strength or weakness?