💎 #CoinRank Daily Insights
🔹 How Do Market Makers Operate?
📊 The Core Role of Market Makers
Market makers provide liquidity by continuously quoting both bid (buy) and ask (sell) prices. Their profit comes from the spread—the difference between these prices. 💰
🔄 Managing Inventory & Risk
They hold assets and adjust bid/ask prices based on market demand. Their main objective? Minimize risk while ensuring smooth liquidity across exchanges. ⚖️
⚡ The Power of Algorithms & HFT
High-frequency trading (HFT) algorithms allow market makers to update prices and execute trades within milliseconds, keeping markets efficient even in volatile conditions. 🚀
