Binance Futures For Institutions - Pioneering Performance & Technology

2020-06-09

At Binance, we work with our institutional clients to understand their business objectives and develop solutions to help them achieve their goals.

Binance Futures offers bespoke trading services and global expertise in the full range of crypto-derivative products, including futures, options, and leveraged tokens. 

Our institutional clients receive dedicated service around the clock as well as access to deep liquidity and non-latent access to institutional trading in a secure environment.

At Binance Futures, our institutional clients enjoy the following infrastructure and services:

- Negative maker fees 

- Active taker participation

- Higher API limits

- Ultra-low latency connectivity & support services

- Deep liquidity

1. Active taker participation

Binance Futures offers the lowest taker fees in the industry. Our multi-tiered fee structure are as follows:

Binance Futures offers a dynamic fee structure, where users enjoy discounts on taker fees through various marketing campaigns. For instance, Binance Futures provides a 10% discount for traders holding BNB.

By offering the lowest taker fees, Binance Futures attracts a strong retail client-base and ensures active taker participation at all times. This advantage simply means that market makers on Binance Futures enjoy more active participation in comparison to other exchanges where volumes and liquidity are lesser.

To further enhance liquidity and to provide a better trading experience for all users, qualified market makers on Binance Futures receive a negative maker fee as an incentive to provide liquidity across our futures markets.

For more information, check out our Binance Futures Market Making Program.

2. Market data solutions & API 

At Binance, we offer many sophisticated APIs to support your business. Market Makers and Algorithmic Traders can directly access the low-latency, accuracy, and reliability of Binance Futures' trading network.

The Binance Futures API gives you the ability to build on the robust Binance Futures infrastructure while customizing your entire trading experience. Please read our API documentation for more details.

In addition, Binance Futures supports its institutional clients with market data solutions. We provide tick by tick real-time market data, which is disseminated after every trade transacted in the market. This allows traders to discover price changes very quickly and capitalize on opportunities faster than traders on other platforms. 

Binance Futures also provide users with historical data to assist with backtesting and trading strategies. The data provided will be year-to-date tick level trading data, including official records of trade times, prices, and quantities.

For access to our historical data, complete this application form.

3. Access cutting-edge technology  

A matching engine is the fundamental building block of any cryptocurrency exchange, it enables users to transact their orders efficiently.

As such, Binance Futures has spent a tremendous amount of effort to build an industry-leading matching engine, which has enabled us to offer a stable and seamless trading experience.

Our trading platforms are engineered for speed, stability, and resilience, routinely processing up to 100,000 orders per second with an average latency of 5 milliseconds. By contrast, other matching engines can only handle 100 or fewer orders in the same time frame. 

Binance Futures’ matching engine has been proven in extremely volatile markets, where our platform was unaffected by volume spikes and operated smoothly with no delays.

At Binance, we understand the competitive and fast-paced nature of trading in the derivatives market. To succeed in this competitive arena, low latency trading is critical to engage the marketplace with maximum efficiency. As such, we support our clients with the following cutting-edge technologies:

1. Low latency solutions: Low latency market data delivery and trade execution for some of the world’s most sophisticated high-frequency trading firms.

2. API limit: Users on Binance enjoy higher API limits of 1200 orders per minute. With higher API limits, traders can trade at optimal efficiency. 

4. Deep liquidity 

Binance's unique trading ecosystem is built upon the synergies of spot and futures markets. It allows traders to transit between the spot and futures markets easily and quickly. This enables traders to conduct sophisticated trading strategies such as risk hedging and arbitrage. 

Institutional traders around the world rely on Binance Futures for direct access to deep liquidity to enhance their trade execution strategy and drive increased performance. In periods of high volatility, these traders will transit from spot to futures to capitalize on market movements. Thus, users can trade with optimal efficiency in both markets due to the deep liquidity and ease of moving capital between spot and futures.

Since the start of the year, Binance Futures has seen more liquidity in its BTCUSDT perpetual contracts as open interest and daily volumes grew. Our trading volumes have grown more than 20 fold, surpassing BitMEX to secure a position as one of the largest trading venues for BTC futures.

Monthly volume growth of Binance Futures BTC futures vs. BitMEX

As a result, the historical bid-ask spread on Binance Futures BTC perpetual contracts has declined significantly, indicating better order-book liquidity and volumes. As a result, traders can transact orders efficiently with little to no impact on prices. 

The bid/offer narrowing spread is largely attributed to its growing user base open interest and daily volumes. The increase in market participants translates into thicker depths on order book and tighter spreads. With improved liquidity, users are more likely to stick with the platform as their preferred exchange.

Binance Futures has established itself as the go-to venue for institutional traders due to 3 main factors:

1. Active taker participation

2. Nasdaq-level matching engine with 100,000 TPS

3. Deep liquidity

Binance Futures offers a robust trading experience supported by a low-latency network, where institutional clients can execute their trades through a fully customizable interface. 

We provide access to a wide range of features, including advanced order types, algorithmic trading, full market-depth view with real-time market data, charting, and a suite of adjustable parameters. 

With its fast and stable matching engine, Binance Futures offers a seamless trading experience for both retail and institutional traders.

Start trading on Binance Futures now!

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