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Get Paid For Limit Orders?
by
slimus
on 18/06/2014, 13:20:00 UTC
Hello

I was making some researchers on FX brokers, and I found that some brokers are offering to pay traders for executing limit orders. This is a small shift in the maker taker model where limit orders get a discount on the transaction fees.
here's a description of this model : http://orderflowforex.com/2011/10/get-paid-for-limit-orders/
Based on this description, the motivation for such a model are :

-attract market makers
-increase market liquidity
-get tighter bid/ask spread
-increase market depth

My question : is it possible to apply this model to the current bitcoin and altcoin exchanges ? where only market orders will pay a fee and this fee will be shared between the exchange and the trader who initiated the limit order. What are the implications ?


Thanks  Wink