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What is the Function of a Market Maker?

  1. INDODAX
  2. General
  3. Understand the Terms

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Market makers act as traders who promote liquidity in the market to ensure efficiency in trading by holding large amounts of assets that can be bought or sold in a very short period of time. However, digital asset exchanges have a primary interest in traders who create liquidity and trading volume on its platform. Therefore, exchanges incentivize traders accordingly.

Market Maker refers to a company or individual who is involved in the two-sided market of a particular security. This means that it provides the bid and ask together with their respective market sizes. Market makers seek to profit from the bid-ask spread and provide liquidity to the financial market. Please note that using a limit order does not guarantee that the order will become a maker order. If you want to ensure that the order enters the order book before it is filled, please select “Post only” when placing an order (currently only available on the web version and desk version).

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