Overview of the Announcement
On October 5, 2025, Binance announced a modification to the tick sizes for several USDⓈ-M Perpetual Futures Contracts, aimed at enhancing market liquidity and improving user trading experiences. This adjustment will take effect on October 8, 2025, at 07:00 UTC. This article explores the details of this announcement, what the tick size changes mean for traders, and strategic recommendations for navigating this adjustment.
What is Tick Size?
Tick size refers to the minimum price movement of a trading asset. For futures contracts, this can directly influence user trading strategies and transaction costs. Adjustments to tick sizes can facilitate tighter spreads and better liquidity, which are essential for active traders looking to execute trades efficiently.
Adjustments to USDⓈ-M Perpetual Futures Contracts
As per the announcement, here are the specific changes in tick sizes for the selected trading pairs:
| Contract Type | Trading Pair | Before | After |
|——————|——————|————|———–|
| USDⓈ-M Futures | AIAUSDT | 0.00001 | 0.0001 |
| | BNTUSDT | 0.00001 | 0.0001 |
| | DOODUSDT | 0.0000001 | 0.000001 |
| | LIGHTUSDT | 0.00001 | 0.0001 |
These changes will not affect existing orders; all orders placed before the adjustment will continue to be matched under the original tick size regime.
API Updates
For API users, the tick size modifications will also be reflected. You can retrieve the latest tick sizes of USDⓈ-M Perpetual Futures Contracts via the endpoint _GET /fapi/v1/exchangeInfo_. It is advised to consult the full API Changelog for further details.
Implications for Traders
- Re-evaluating Trading Strategies: The updated tick sizes may alter how traders approach their strategies. Tighter tick sizes can result in improved trade execution but may require adjustments in position sizing.
- Market Liquidity: Tighter tick sizes tend to improve market liquidity. Traders should reassess their liquidity requirements and adapt.
- Cost Management: As tick sizes decrease, the cost associated with each tick on loss or gain might change; understanding this can enhance profitability.
- Understanding Market Orders: With the new tick sizes, traders using market orders should pay close attention to the effect of the changes on slippage and execution quality.
Conclusion
In summary, Binance’s adjustment to the tick sizes for USDⓈ-M Perpetual Futures Contracts serves to foster stronger market conditions. As traders navigate through this change, having an updated understanding of tick sizes and their roles in trading strategies will be essential.