Market Making in crypto markets explained



Disclaimer: The information in this group is for educational purposes only and is not investment or financial advice. Please do your own research before making …

17 Comments

  1. pretty good video.. lets say you set up an exchange and someone buys from your exchange and you want to sell it to make your sleight profit… is this action automatic/programmed instantly when the purchase from your customer has been made? or… do you have to monitor your board all day long 24/7 to quickly react to your customers purchases so you can sell them instantly to make your profit?

  2. suppose btcusd price is at 10000 and supposedly is same price on both exchanges. I put buy at 9990 1% lower and i get filled. Same time i sell btc on the other exchanges but possibly the price went down as well and so i make 0 -fees ?

  3. thanks for sharing this knowledge. much success in the markets to you.
    could you hedge with futures or options? i would imagine that options are not liquid enough in crypto especially altcoins. just a thought

  4. Hey Mike, heel veel dank voor deze video! Ik ben samen met mijn vader bezig met het opzetten van een marketmaker bot op Nash. Voor ons is dit de eerste keer, dus fijn om jouw uitleg gevonden te hebben!

    Groetjes,
    Nick

  5. Hi, thanks a lot for this video. I would like to ask a question regarding the quantities of crypto that the market maker should hold during his operation. For example, if he has to handle $1m of XBTUSD volume per day, is there a formula, or at least an educated guess, on how much BTC the market maker must hold to be able to handle this market? Thanks a lot in advance.

  6. those exchange rates at the Hong Kong convert shop are obscenely ripoff; go to a bank or a REAL exchange shop for better rates than the bank (somewhere around 0.5 – 1% NOT 7-10%)

  7. So if you have limits on both side of the book, and then it dumps 5%… wth do you do? your holding a bunch of XBT worth 5% less now… i fell like that risk greatly outweighs the profits made by scalping such tiny amounts.. how are you protecting yourself?

  8. Thanks for showing your personal trader results. It allows a newbie to see how much they could expect to earn if they put a bit of effort into this.

  9. Nahhhh. I know bitmex doesn't deal with actual USD or USDT but rather only in BTC. Their BTC/USD perpetual futures actually doesn't have USD counter party. They are like a gambling den, where Bitmex can get your BTC by moving the market with imaginary USD in the direction beneficial to them as they can see the order books and those orders that most likely to get liquidated. It is like borderline scam. In addition, I don't think there are deep liquidity, what I see is that Mex are doing wash trading in order to follow their reference index price.

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