Market Maker
Financial participant ensuring market liquidity by continuously placing buy and sell orders.
Beginner-friendly explanation
A market maker is someone who constantly buys and sells crypto so that you can always trade easily. Example: When you want to buy Bitcoin, a market maker ensures it’s always available on the exchange.
Intermediate-level insight
Market makers maintain good liquidity by narrowing the spread between the buying price (bid) and selling price (ask). They enable fast and efficient transaction execution. Example: Thanks to the market maker, the ETH/USD spread remains very tight, facilitating your daily trading.
Advanced perspective
Professional market makers use advanced algorithmic strategies to continuously balance their positions, minimize risk, and profit from the spread. Their role is crucial for market stability, especially during high volatility periods. Example: A market maker uses high-frequency algorithms to balance orders across multiple exchanges simultaneously, stabilizing short-term prices.
Markets & Order Types
market maker, liquidity, spread, bid, ask, algorithms, high frequency