Market Making

Market making is an activity whereby market makers provide liquidity, typically in return for compensation. Financial markets rely on market makers to facilitate orderly trading of the underlying cryptoassets, stocks, options, and other products listed on their platforms. Traditionally market makers profit from 1) harvesting the spread between the bid and ask and 2) buying (or selling) when there are significant market imbalances and selling (or buying) when imbalances correct.