The amounts would need to be very small and you would likely not get paid unless your trade were to actually get filled.
Yeah traders get paid only if their trade get filled. Do you think this model could be an incentive for market makers to get the exchange's order book filled ?
This model would fit the definition of incentives for an exchange to have a larger/deeper order book.
Would exchanges need to do this in order to get people to trade on their exchanges? I don't think so as there is enough of a demand to trade bitcoin for fiat as it is.
Thank you for your response,
Here's my situation : I have been working for 3 months with 2 of my friends on an option exchange for altcoin. It's a platform that will allowed traders to issue and trade options contracts on altcoins (litecoin, doge, ...) priced in bitcoin. The very few derivatives exchanges that exist offer derivatives contracts for bitcoin priced in USD. Since the majority of altcoins are traded and priced in bitcoin, why not offering derivatives (options contracts) on altcoin priced in bitcoin ? With this tool traders will be able to speculate on the future price and miners to hedge their risk and fix their future selling price (options contract are like insurances contacts)
One of my main concern for this project is how to attract market maker and get my order book filled. One solution that we found is to offer to share the transaction fees (paid by traders who initiated a market order) with market makers (traders who sends limit orders). The idea is to create enough incentives to attract liquidity in the market. I know that there is a lot more to do in order to attract liquidity, (reputation and security) but in the case of a small and unknown exchange as mine, I'm wondering if this model could help.