Hi,
How does Binance futures match orders, what algo does it use : FIFO, PRORATA, LMM, TOP, ,…
Example: When having the following orders in the orderbook -> at the best bid price=45,000
Order 1: 1BTC @ 45,000 10:00:01
Order 2: 100BTC @45,000 10:00:02
and a sell market order for 10BTC 10:00:03 is executed. Which order will get filled first, and what will be the resulting partial fills.
In spot it would be Order 1 to get filled first (FIFO), should be the same for futures, but can’t confirm.
Might I ask why is it important to know this?
Thanks, it is important since some exchanges might prioritize liquidity, for example having prorata ,will incentivize large limit orders. which also incentivizes large market orders
In my use case it’s important from a market making perspective since I can know if i need to change my order size to get the quickest fills. If something other than FIFO is used, I might be “wasting my time” with small orders, if Order 2 gets a higher percent of the fill.
Kindly confirm and let me know 