MarketsTrade

Pro

Start fresh

Algorithms

Choose from an algorithmic template to start creating strategies.

AllMarket makingIndexesTechnicalAdvanced

Spread Market Maker

ID 1bf597365a3d63c333dedb51c32ff850870511aa9c0e9232a69dfcd7

PUBLIC

By

Description

The "Spread Market Maker" algorithm is designed for traders to profit from the bid-ask spread by automatically setting buy and sell orders at a constant distance from the current market price. This distance, set either in percentage or absolute value, determines how much lower than the current market price the buy orders are placed and how much higher the sell orders are set. For instance, if the market price of an asset is $100 and the trader sets a $2 distance, the algorithm places a buy order at $98 and a sell order at $102. This method capitalizes on small price movements within a predefined range, aiming for profit from buying low and selling high, making it ideal for markets with stable prices or predictable volatility. It offers a systematic, lower-effort approach to market making, allowing traders to benefit from price differences without the need to manually adjust orders frequently.

View
MARKET_MAKING

Description

The "Box Top Market Making" algorithm helps traders participate in market making by placing orders at competitive prices, with a safeguard ensuring orders stay a minimum distance away from the current market price to protect margins and manage risk. This distance, set as a percentage of the spot price, balances competitiveness with the risk of adverse price movements. For example, in a cryptocurrency market with Bitcoin at $10,000, setting a 0.5% minimum distance means orders are placed only if they are $50 away from the spot price, optimizing order placement for profitability while mitigating volatility risks. This approach is ideal for fast-moving markets, allowing traders to strategically manage their positions.

View
MARKET_MAKING

Description

Initial market maker addresses the challenge of being first market maker using LSE price as a source oracle and switching over to spot price as spot price starts to build. Further, it manages the risk exposure by releasing the assets into market making algorithm as the time passes.

View
MARKET_MAKING

Description

Initial market maker addresses the challenge of being first market maker using LSE price as a source oracle and switching over to spot price as spot price starts to build. Further, it manages the risk exposure by releasing the assets into market making algorithm as the time passes.

View
MARKET_MAKING
Terms & ConditionsPrivacy Policy