Key Points
Binance tick size update is set to reshape how traders interact with several USDⓈ-M perpetual futures contracts, as the world’s largest crypto exchange by trading volume announced a series of precise pricing adjustments scheduled for December 22, 2025. The update, revealed on December 18, is designed to enhance market liquidity and refine the overall trading experience without disrupting existing positions or operations.
The announcement immediately drew attention from futures traders, particularly those active in high-frequency and short-term strategies, where even the smallest pricing increments can influence execution quality and spreads.
Binance Tick Size Update Takes Effect December 22
The Binance tick size update will be implemented on December 22, 2025, at 07:00 UTC, according to the official notice. Tick size refers to the minimum price movement allowed for a trading pair, and adjusting it allows prices to move in finer increments.
Binance confirmed that the change will apply specifically to USDⓈ-M Perpetual Futures Contracts, a popular derivatives product among professional and retail traders alike. Importantly, the exchange emphasized that the update will not impact normal trading operations on USDⓈ-M futures.
Orders placed before the update will remain valid. After the change goes live, those existing orders will continue to be matched using the original tick size, ensuring a smooth transition for users with open positions or pending trades.
What Exactly Is Changing in the Binance Tick Size Update
Under the Binance tick size update, several trading pairs will see their minimum price increment reduced, allowing for more granular pricing. This is often seen as a liquidity-enhancing move, as tighter price steps can narrow bid-ask spreads and improve order matching efficiency.
Here are the specific adjustments announced:
- USELESSUSDT: from 0.0001 to 0.00001
- NOMUSDT: from 0.00001 to 0.000001
- EVAAUSDT: from 0.001 to 0.0001
- SLPUSDT: from 0.000001 to 0.0000001
- WAXPUSDT: from 0.00001 to 0.000001
- POWRUSDT: from 0.0001 to 0.00001
- SCRUSDT: from 0.0001 to 0.00001
- SUSDT: from 0.0001 to 0.00001
- ATUSDT: from 0.0001 to 0.00001
- VTHOUSDT: from 0.000001 to 0.0000001
- VANRYUSDT: from 0.00001 to 0.000001
- STABLEUSDT: from 0.00001 to 0.000001
Each adjustment lowers the minimum price movement, increasing price precision across these contracts.
Why the Binance Tick Size Update Matters for Traders
The Binance tick size update is not just a technical tweak. For active traders, especially those relying on algorithmic systems or scalping strategies, tick size plays a crucial role in trade execution.
Smaller tick sizes generally mean:
- More precise order placement
- Potentially tighter spreads
- Improved liquidity at multiple price levels
- Greater flexibility for limit orders
By refining the pricing grid, Binance is signaling its intention to keep its futures markets competitive and efficient, particularly as global derivatives trading continues to grow.
No Disruption to Existing Orders or Positions
One of the key reassurances in the Binance tick size update announcement is that existing orders will not be affected. Binance confirmed that any orders placed before the update goes live will still be matched under the original tick size rules.
This approach minimizes confusion and protects traders from unintended order cancellations or forced adjustments. It also gives users time to review and, if necessary, recalibrate their trading strategies ahead of the change.
API Changes Included in the Binance Tick Size Update
The Binance tick size update will also apply to API trading environments, which is particularly relevant for institutional traders and developers running automated strategies.
Binance advised API users to check the latest tick size information using the endpoint:
- GET /fapi/v1/exchangeInfo
The exchange also directed users to its API Changelog for additional technical details and ongoing updates. This ensures that algorithmic trading systems can be updated in advance to avoid mismatches or rejected orders after the new tick sizes are applied.
Binance’s Broader Strategy Behind Tick Size Adjustments
While Binance did not announce broader structural changes alongside this update, tick size adjustments are often part of a wider effort to fine-tune market mechanics. As trading volumes and user participation evolve, exchanges periodically recalibrate parameters like tick size to balance liquidity, volatility, and execution quality.
The Binance tick size update reflects this ongoing optimization process. By targeting specific contracts rather than applying a blanket change, Binance appears to be responding to observed trading behavior in these markets.
Regional Availability and Important Disclaimers
Binance noted that the announcement is general in nature, and some products or services referenced may not be available in all regions. This is consistent with the exchange’s standard practice, given varying regulatory frameworks worldwide.
The company also cautioned users about potential discrepancies between translated versions of the announcement and the original English text. For accuracy, Binance recommends relying on the English version as the authoritative source.
How Traders Can Prepare for the Binance Tick Size Update
Binance encouraged users to review the Trading Rules and adjust their strategies accordingly. While the update does not force any immediate action, traders who rely on precise entry and exit points may want to revisit their order placement logic.
For API users, confirming system compatibility with the new tick sizes before December 22 is especially important to avoid execution issues once the update goes live.
Reactions and Market Expectations
Although Binance did not include external commentary in its announcement, tick size changes are generally welcomed by active traders who favor more precise price discovery. The lack of operational disruption and the clear communication around timing and scope have also been seen as positives.
As futures markets continue to attract both retail and professional participants, incremental updates like this one play a role in maintaining confidence and usability across trading platforms.
Conclusion
The Binance tick size update scheduled for December 22 marks a targeted effort to enhance precision and liquidity across multiple USDⓈ-M perpetual futures contracts. By reducing minimum price increments while preserving existing orders and operations, Binance is reinforcing its focus on market efficiency and user experience.
For traders, the update offers greater flexibility without added complexity, provided they stay informed and adjust their strategies where necessary. As derivatives trading continues to mature, such refinements are likely to remain a regular feature of the evolving crypto market landscape.
