2. Rate limits
- Black Ocean reserves the right to limit the number of open order requests a user can have. There are two main reasons why this is beneficial to both parties:
i. The case where the user is sending thousands or tens of thousands of messages without waiting for a response to those messages is usually indicative of a run away process and the #1 reason traders go broke on algorithmic trading mishaps. The best available and safest practice is never to send another order until a response to the previous order has been received. Black Ocean recognizes not every client is the same and there may be valid reasons for not waiting, so, in light of that, if a client can show justification for sending more than 500 orders before receiving a response, orders above 500 will be rejected until such time as the user has received 1 response. In short, after 500 orders have been sent, the user must receive one response before sending another order. Cancels do not count towards this total. Even with a 500 open order request limit, it is possible to send thousands or 10's of thousands of orders per second. If you need more than the current limit, please contact your Black Ocean Account Manager and request a higher limit.
ii. The second reason a user might want to send more than 500 without receiving a reply is because they are spamming the system. This hurts everyone as these orders, orders which are usually far away from the top of the book do require processing time and that impacts orders which are honest in nature.