What is a Market Maker?
A market maker is an individual market participant or member firm of an exchange that also buys and sells cryptocurrencies for its own account, at prices it displays in its exchange’s trading system, with the primary goal of profiting on the bid-ask spread, which is the amount by which the ask price exceeds the bid price a market asset.
A market maker must have a certain experience, strength and credibility in trading. He can provide trading prices to other investors in the market and accept trading requests at these prices. They trade with investors with their own funds to provide immediate liquidity for the market and to earn a certain profit through the price spread. In short: Market makers quote price and buy or sell at that same price.
In general, market makers need to meet the following requirements:
1. Possess strong financial strength to meet the trading needs of investors.
2. Have the analysis ability and ability to provide accurate quotation.
Market maker trading features:
1. Improve liquidity and enhance market attraction.
2. Effectively stabilize the market and balance market running.
3. Have the experience/skill to make informed price prediction.