How can I determine the right amount to undercut the orderbook on BitMEX to attract more buyers?

3 answers

• Burks EllisJan 22, 2021 · 4 years ago
  Determining the right amount to undercut the orderbook on BitMEX can be a strategic decision. One approach is to analyze the current orderbook depth and liquidity. By observing the buy and sell orders, you can identify the price levels where the orderbook starts thinning out. This indicates potential areas where you can undercut the orderbook to attract more buyers. It's important to strike a balance between undercutting enough to attract buyers and not undercutting too much that it negatively impacts your profitability. Experimenting with different undercutting amounts and monitoring the market response can help you find the optimal amount.
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• Sivakrishna PrathipatiDec 07, 2024 · 7 months ago
  When determining the right amount to undercut the orderbook on BitMEX, it's essential to consider market conditions and the competitiveness of the trading pair. If the market is highly volatile or there's a lot of trading activity, you may need to undercut more aggressively to stand out. On the other hand, if the market is relatively stable or there's low liquidity, undercutting too much can lead to slippage and potential losses. Additionally, keeping an eye on the spread between the highest buy order and the lowest sell order can give you an idea of the potential room for undercutting. Remember to regularly review and adjust your undercutting strategy based on market dynamics.
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• lulu3010Nov 16, 2021 · 4 years ago
  Determining the right amount to undercut the orderbook on BitMEX is a crucial aspect of attracting more buyers. At BYDFi, we recommend analyzing the historical trading data for the specific trading pair you're interested in. Look for patterns and trends in the orderbook depth and liquidity. This can help you identify the average amount by which the orderbook is typically undercut. Additionally, monitoring the market sentiment and news related to the trading pair can provide insights into potential buyer behavior. It's important to note that the optimal amount to undercut may vary depending on market conditions and the specific trading pair, so it's always a good idea to stay informed and adapt your strategy accordingly.
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