Many newcomers often assume that Market Makers (MMs) manipulate prices, hunt stop-losses, or trade against retail traders. But in reality, their role is far simpler and more crucial: they provide liquidity to the market.

Providing liquidity means placing buy and sell orders around the market price so that anyone can execute trades instantly. Without MMs, markets would freeze — no buyers when you want to sell, and vice versa.

MMs don’t predict trends or direction. They profit from spread — the gap between their buy and sell orders — by placing a Long Limit below the market (e.g., at $99 when price is $100), and then placing a matching Sell Limit above (e.g., $101). When both orders get filled, they lock in profit without betting on price direction.

They never hold more than what they’ve opened. If they Long 10 BTC, they’ll close exactly 10 BTC. No extra positions, no trend chasing — just clean, repeatable spread trading.

Importantly, MMs avoid opening Shorts proactively, because Shorts carry higher directional risk. Their job is to keep the market running smoothly, not to take sides.

They usually hold positions briefly — often seconds or minutes — and focus on balancing exposure as quickly as possible.

So no, MMs are not your enemy. They don’t "hunt" your stop-loss. They’re the reason your orders can get filled 24/7. Without them, markets would be slow, erratic, and illiquid.

Instead of fearing them, learn from them. Trade with patience, emotional control, and always have a clear exit plan — just like a Market Maker.

#MarketStructure #LiquidityMatters #SmartTrading