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PermieBTS edited this page Aug 8, 2019 · 4 revisions

8.0 Fixed Spread

8.1 What does "Spread" mean? The user defines the spread percentage to be used by the strategy. This is very simple and unproblematic. There are a few things to remember when deciding a spread:

8.1.1 Since the price fluctuates, when using the Fixed Spread option the effective spread will be slightly smaller than the nominal spread.

8.1.2 In terms of profit, the market fee actually equals zero spread: If the market fee is 0.2% for one of the assets, that is 0.1% on average, so when the effective spread is 0.1% the profit will be zero.

8.1.3 For Relative Orders to be profitable, there must be orders filled on both sides. If the market is silent and only significant price trends result in filled orders, the back and forth trading will be very slow and fluctuations large. This means the spread also has to be large, and trades will happen pretty seldom. A small spread will likely just result in losses. Relative Orders should almost always be used on liquid and mature markets.