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Market Making

Maker Taker Market Making

We provide an automated market making, maker taker strategy, directily inside the executium trading system. Online trading has made it possible for anyone with an internet connection to invest in various financial instruments and make some money from the comfort of their homes. Traditionally, online trading was a reserve for stocks and related commodities which typically have lots of barriers of entry, but not anymore.
Market Making

Maker Taker - Online Strategies

The cryptocurrency revolution has changed all for the good, with cryptocurrency, you can open an account with an exchange in just minutes and start trading right away. You do not need huge deposits in the exchange account for you to trade and your trading time is not limited to a certain number of trades per day.
Maker Taker System View
Bitmex Maker TakerBinance Maker TakerBitfinexBitstamp Maker TakerKraken Maker TakerBittrex Maker Taker
Market Making and executium
The role of market makers in the crypto market is to provide liquidity and bridge the gap between the sellers and buyers in a manner that ensures order trading goes one smoothly. Market makers are here to stay because they take the short-term risks with an aim of sourcing on trades in the long-term.
Why use market making strategies

Your Maker Taker Strategy

Market makers profit best in high volume environments and that is why you will find most of them on assets that have lots of volumes like Bitcoin, Ethereum, etc.

Encouraging the involvement of market makers involved in smaller coins is not automatic and sometimes, market makers are paid in contractual agreements to help in ICOs. However, the only thing a market maker can guarantee is a constant bid-ask spread in a predetermined quote size. Some market makers may have proprietary software which they use to make thousands of transactions per day, such as those which use executium market making software.

These algorithms also come with a dedicated human who keeps an eye on the market. This way, the order book will have a desired spread but that is the only thing they can guarantee.
Trading System
Market Making with a Maker Taker Strategy
The maker Taker trading system refers to a pricing system by which exchanges collect fees on different types of trades. This system allows the patient trader to post a standing limit order and give the price at which they are willing to execute a buy or sell trade with the associated quantities.
Moving Price
Our maker taker system moves the price based on an X value offset, so you keep in the desired target.
Arbitrage
You can buy and sell on any of the exchanges we support so that you get the assets you desire.
Maker Taker Spread
We will only execute your Maker Taker LIMIT ORDER once your desired spread is within your preset range.
Our Maker Taker will amend your order as the price action moves.
How do I use market making to my advantage?
Market Making is made easy with our automated maker taker system.
Trading with Maker Taker
How it works aganist how it should work

Maker Taker is difficult manually

A marketable limit order refers to a buy order that has the price set above the lowest offer on the market or a sell order that has the price set below the highest bid on the market. Once the patient trader makes a limit price order, he just waits until a trader that is willing to accept their price comes on the exchange. If a trader sees the order book has prices they are okay with, they will place a market order and the limit orders on the topmost of the order book will be triggered to fill the market orders. Because the patient traders just place their limit orders and wait for their price targets to hit, they in a way allow other traders to trade when they want. This is why they are referred to as market makers, but, can be a time consuming and painfully cumbersome task if you attempt to market make manually, this is why the executium maker taker system lifts that load for you.

Pay less fees market making

Market makers provide liquidity to the market because they give other traders the ability to trade whenever they want to. The opposite of makers is takers. While makers provide liquidity to the market, the takers remove liquidity from the market. The cryptocurrency market is quite volatile and prices can easily fluctuate drastically. Market markets help to reduce these fluctuations which can actually be a good thing for everyone. For this reason, the market makers are typically given incentives by the exchanges. For instance, the makers might pay less money in commissions as opposed to the takers.

Pay less fees market making

The maker taker pricing model was invented way back in 1997 to help create some relative stability in high-frequency trading (HFT) markets. In HFT markets, there is a very high risk of suffering a loss due to the rapid trading activity which makes prices to oscillate very quickly while also reducing the liquidity. Such factors might benefit some short term traders but most long term traders will be adversely affected.

Market makers help to add liquidity to the market and that somewhat stabilizes the prices movements. This is not to mean that the prices will not fluctuate but they will at least not fluctuate too rapidly.

Exchanges charge a premium fee for traders who want to trade rapidly. This sort of discourages high-frequency trading. Traders who use limit orders get rewarded for their patience in that they enjoy cheaper commissions. Novice traders who do not know the maker-taker fees end up losing a lot of money on unnecessary commissions but the more advanced traders avoid using market orders unless in very unique situations. Since most of the popular exchanges use maker taker pricing model, it is a good idea to avoid using market orders as well.

Market Making Software

As an online trader, there are two main strategies for making money on the markets – buy-side methods and sell-side methods. Buy-side methods include arbitrage trading, machine learning techniques as well as regression predictions.
executium Trading system with Maker Taker
What all buy-side strategies have in common is that the trader makes a profit from the market fluctuations. On the flip side, the sell-side methods are those that capture the spreads (the price difference between the buy and sell orders). This process is also referred to as market making, a market maker can be said to be a trader who provides liquidity for both sell and buy products on the market. Market makers, therefore, offer a guaranteed counterparty for other traders and this helps the prices to continue moving.

Market makers use two main strategies

Market makers ultimately help to ensure the market is equitable because they help to create liquidity on the market. Market takers typically offer corresponding traders to the limit orders that are set by the market makers. Good market making, therefore, requires the consistent updating of the prices on their orders based on the demand and supply.

• Rising the prices - they do this in order to attract people who were buying with anticipation of higher prices. As the volume comes in, the prices rise and the market maker then sells the assets at a profit.

• Lowering prices of overpriced assets – they do this in order to increase the supply because there will not be too many traders in an overpriced market. The market maker will then take advantage of the increased activity to sell their inventory.

Market makers can, therefore, control the units of cryptocurrency that are available on the market and they can, therefore, adjust prices based on the demand and supply created by their actions. In other words, market makers are not only influential but also useful in the market. Since they can guarantee the liquidity of certain quantities, they have the leverage to determine the ask or bid price on the order book.
The executium maker taker trading system works with Bitmex, Bitstamp, Binance, Kraken and Bitfinex
Maker Taker with all the top exchanges
We have worked hard to deliver our users the very best when it comes to a maker taker strategy that works with Bitfinex, Binance, Bitstamp, Kraken and Bitmex
Trading is the lifeline of any crypto project in existence today with the main objective of crypto market making is to offer a self-sustaining and autonomous economic ecosystem, which executium can bring you. Traders in the crypto market are connected through exchanges which provide a platform for buying and selling the various cryptocurrencies. Like in any other trade, the prices of the digital assets are determined by the demand and supply. All the coins that are tradeable on an exchange typically have their selling price (bid) and their buying price (asking price).

A bid can be defined as the price that is set by dealers in the market and this is the price they are actually willing to pay for the digital asset. The id price is usually set lower than the sell price. The Ask is the price that is set by the dealers in the market as the amount they are willing to sell a digital asset for. The Ask is usually set higher than the bid. The spread refers to the difference between the ask and bid prices. A market that has wide spreads can be said to be an extremely volatile market while one that has thin spreads can be said to be more stable – and this is where market makers come in. market making is the process of using limit buy and sell orders to reduce the spread on the order book and thereby enhance efficient price movements on the market.

Market Making System

Market Making in Online Trading

It is common practice for traders to sell their digital assets for prices that are higher than the prices they bought them for, in an ideal scenario anyway. This is how projects make money, so, traders will need favorable conditions in order to trade profitably. They might for instance use HODL approach or they may also look for buy-low-and-sell-high opportunities in the market. As more traders get involved in a coin, the trading volume goes up and this ultimately increases the market cap of the coin.

The biggest challenges in market making

The biggest challenge for new cryptocurrencies is achieving and maintaining healthy liquidity. If a digital asset lacks trading volume, it will in effect be a dead asset. The bigger cryptocurrencies like Bitcoin and Ethereum do not have an issue with trading volume. The prices will continue to fluctuate based on various factors but the fact that they have high market caps and high trading volumes means that they will continue to enjoy high volumes of trade.

If a coin is relatively unknown, then liquidation will be a problem. For instance, if there aren’t enough counterparties that bid and ask for the coin, the bid-ask spread may be too large because eth selling prices might get too high while the asking prices continue to get too low. Such a scenario would make the coin illiquid. Market makers help to ensure the bid and ask spread is healthy. In other words, they keep the spread thin. This helps to ensure the coins do not get illiquid and it, therefore, gives a chance for traders to buy and sell the coin as they please. Market makers are therefore very important in the cryptocurrency markets.
Market Making is an important strategy for any crypto trader
What is Market Making?
Market Making is an important part of any traders strategy and requires thought and patience to succeed.
In cryptocurrency, market making is as important as the market itself. This is because it provides opportunities for the market to run efficiently and smoothly. A market maker can be an individual or an institution that provides bids that are targeted to correspond with marketable securities. Market makers help to provide liquidity in the market and this helps to reduce the volatility of prices in the market.

Maker Taker Bitcoin

Market Maker Broker

With respect to cryptocurrency, market makers play a huge role in helping the exchanges to be profitable as well as ensuring efficient market mechanisms. Market makers also help traders and investors by providing liquidity and also by the elimination of delays in the execution of orders. They also help to ensure the markets have even and well stabilized spreads. Let’s look at the role of market makers in greater detail.

Creating liquidity in the market

In the cryptocurrency markets, liquidity is an important tool for the measurement of how fast a particular digital asset is sold or bought on the given market without devaluing the asset. Traders will typically avoid investing in low volume assets. Additionally, not all traders have enough capital to invest in the market. Market makers therefor help in bridging this gap. By putting their orders on the order book, they help to create liquidity in the market and that helps in keeping things going.

Stabilization of spreads

Market makers help in the stabilization of spreads. Because they use limit orders, the prices they set help to keep the prices on the order books at reasonable levels. Stabilization of spreads helps to give traders and investors a good trading environment because they will get reasonable entries and exits into the market. Getting the most ideal entries and exits is very important because it helps the traders to be more profitable.

Elimination of delays

Market makers help in the stabilization of spreads. Because they use limit orders, the prices they set help to keep the prices on the order books at reasonable levels. Stabilization of spreads helps to give traders and investors a good trading environment because they will get reasonable entries and exits into the market. Getting the most ideal entries and exits is very important because it helps the traders to be more profitable.
Trading can be said to be a zero-sum game. Market makers typically adopt different strategies which eventually help to ensure that sellers are matched to suitable buyers and vice versa. Market makers typically use limit orders which interested traders can take advantage of by placing market orders. When a market order is placed, it is filled almost instantly from the prices that are available on the order book. Market makers, therefore, help in the elimination of delays for traders who want their orders to be fulfilled immediately.

Market makers, therefore, make the entire crypto trading ecosystem easier, more efficient and more convenient for all market participants. The traders benefit by getting more reliable price movements and this also helps to boost the confidence of investors. Market makers benefit as well because exchanges offer them incentives to continue filling the order books with limit orders. The most common incentive employed by cryptocurrency exchanges is reduced commissions for marketing making orders. Cryptocurrency is unregulated by any government of body and this is one of the reasons behind the volatility in the crypto markets. Thankfully, market makers help to provide some form of price regulation.
What is a market maker? and how you do we make our maker taker strategy work with Bittrex, Bitstamp, Kraken , Bitfinex and Kraken and Binance.
Binance Maker TakerBitfinexBittrex Maker TakerBitstamp Maker TakerKraken Maker TakerBitmex Maker Taker
executium is a trading system for cryptocurrencies that enables all-in-one control of your trading activities.

Options Market Maker

Most cryptocurrency exchanges operate on the maker-taker fee structure. The term maker is derived from the market maker concept. A market maker refers to an investor or trader that provides liquidity in the market. In cryptocurrency, a market maker can be said to be the trader that places limit orders. Prices that sit on the order books are important because they help to minimize the oscillation of prices. Since market makers help in stabilizing the price movements, most exchanges reward them by offering them lower fees. On the other hand, takers are those that liquidity from the market. In simpler terms, they place orders to execute immediately on the market prices. In most cases, the takers pay higher fees than makers.

Market Maker Method

The maker-taker model was developed in 1997 by Joshua Levine and the idea was to reward traders who give liquidity to the market while charging more to those who were taking liquidity from the market. Exchanges make their income by charging fees for the transactions so they may not eliminate the commissions but at least they subsidize them as an incentive for the market makers.

Designated Market Maker

The maker-taker model is implemented differently across different markets. For instance, in the stock market, market makers may be rewarded by being paid for every order they place. Most crypto exchanges, however, use the discounted trading fees model as the incentive they give to the makers.

Market Maker Bot

Some unscrupulous market makers might try to employ wash trading strategies in order to manipulate the markets in their favor. Wash trading is when a trader systematically trades with himself. For instance, they can place several orders and execute them with proxy accounts. Wash trading is however illegal and it was banned in the USA in 1936. Most regulated exchanges have controls that ensure such strategies are not executed on their platforms. But cryptocurrency exchanges are not regulated and there is always the danger of wash trading. As we have seen, market makers might not be possible to influence anything apart from ensuring desired spreads on the order book are realized.
Maker Making
They might therefore resort to other ways of manipulating the prices of assets. The two most common price manipulation techniques are:

Pump and dump – this is where thousands of people are rallied to buy a digital asset and this surge in demand pushes the prices up. Once the desired price target is realized, the asset is sold for a profit, hence the name pump and dump.

• Ramping - this is when an impression of a big buyer is created. For instance, a crypto market maker might create a phantom big buyer by doing huge trades at a certain time every day. the market will get accustomed to this behavior and lots of buyers will try to rush in to outdo the big fish.

Even though some market makers misuse the concept as seen above, market making is actually a good thing for the markets when used well. Without market makers, the prices would be too volatile and it would not be possible to make good profits on the markets. In order to avoid falling victim to unscrupulous makers, make sure to stick to reputable exchanges and does some quality research before buying into the hype of new coin. This will help to keep you safe from the market makers who are out to manipulate prices.

How to become a market maker?

The maker-taker fees apply under the following conditions:

• If you place an order that is filled immediately in its entirety, the exchange will recognize you as a taker and the taker fee structure will apply. The orders usually execute immediately because you are ideally accepting the limit orders that are sitting on the books.

•If you place an order that does not fill immediately, you are recognized by the exchange as a maker and the maker fee structure will apply. Limit orders are usually placed by makers who are waiting for the price to hit their targets before they are executed.

• Looking to market make? Then executium provides a market making platform for Bitmex Maker Taker, Bitstamp Maker Taker, Kraken Maker Taker, Bittrex Maker Taker, Bitfinex Maker Taker, Binance Maker Taker and Huobi Maker Taker

Understanding the fees structure when trading can help you to enjoy more profits by minimizing the charges paid to the exchange. It is in your best interest to set limit orders which will not be placed immediately but rather sit on the order book and wait to be matched with a corresponding market or stop order.

Apart from helping to reduce the commissions you pay, it also helps to eliminate emotions from the trading process, it is worth noticing that not all exchanges use maker-taker pricing models. However, the most popular exchanges do. When researching on which exchange to use for your trading or investing, it is important to find out if they use the maker-taker model. You can tell this by finding out of the exchange accepts limit orders and if they charge less for them. A limit order is the only type of order that will not be executed immediately. On the flip side, a stop order does not execute immediately but it creates a market order once the price levels reach the desired target.
We provide a Bitmex Maker Taker, Binance Maker Taker, Bittrex Maker Taker, Bitfinex Maker Taker, Kraken Maker Taker, Bitstamp Maker Taker and Huobi Maker Taker.
Crypto Trading System
executium is a tailored trading system for cryptocurrency traders. executium ltd, Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola, VG11110, British Virgin Islands
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