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Mar 3, 2021

1) How I learned to stop worrying and love rate limits

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2) NOT INVESTMENT ADVICE. NOT TRADING ADVICE. (Sorry for the deleted thread -- had a key typo at the start...)

3) People constantly want higher ratelimits. But not all orders are the same. The core metric here: $ volume per order sent. In other words, how efficient are your orders?

4) What do FTX's users look like? Well, here is $ traded / orders sent for the top 20 order senders on FTX.

4:01 PM · Apr 8, 2021Twitter Web App

5) So, one note is that some takers have fewer orders per trade, which makes sense. But even when selecting for liquidity providers, there's a huge range. Some customers are 75x more efficient than others!

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6) What's happening? Well, this, basically:

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Mar 3, 2021

5) Anyway... So what about the other mistake? Well, let's say you want to provide liquidity. A common strategy is: Send a bid 0.20% below the best bid, and an offer 0.20% above the best offer.

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7) And, in case you're wondering who reaches out to us asking for higher ratelimits: it's not the people around $100.