What Is the Typical Fill Rate Benchmark for Competitive Crypto Options Market Makers?
There is no single universal benchmark, as fill rates vary significantly based on the option's liquidity, volatility, and the specific RFQ platform's structure. However, a highly competitive market maker often aims for a consistent, moderate fill rate (e.g.
15-30%) that balances volume capture with prudent risk management. Extremely high rates can signal aggressive, potentially unprofitable pricing.
Glossar
Expected Fill Rate
Metric ⎊ Expected Fill Rate represents a crucial quantitative metric in algorithmic trading, estimating the probability that a submitted order for a crypto derivative will be executed at the quoted price or better.
Market Makers
Function ⎊ Market Makers in cryptocurrency, options, and derivatives markets actively provide liquidity by simultaneously offering to buy and sell assets, narrowing bid-ask spreads and facilitating efficient price discovery.
Fill Rate Benchmark
Measurement ⎊ A fill rate benchmark serves as a quantitative standard against which the execution performance of a trading algorithm or venue is measured, calculated as the proportion of an order's volume that is successfully executed.
Competitive Market
Arbitrage ⎊ A competitive market within cryptocurrency, options, and derivatives manifests as rapid price discovery, driven by automated trading systems and sophisticated participants exploiting momentary discrepancies across exchanges or related instruments.
Fill Rates
Metric ⎊ Fill rates represent the percentage of an order's total volume that is successfully executed at the requested price or better, a crucial performance metric in quantitative trading and market analysis.
Fill Rate
Metric ⎊ Fill rate is a crucial execution metric representing the percentage of an order's total requested volume that is successfully executed at or better than the specified limit price.