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What Is Market Making?

Making a market in a stock is known as Market making. It is a process that is carried out by an individual called a market maker. A market maker assist in organizing the daily flows of a stock and on the buy-side or sell-side offers support when is required and frequently plays a unreceptive role throughout normal trading actions or when volumes are adequate. Now there are two types of market makers:



1
Profit Driven Market Makers

They are either an institutions or individuals who look for to revenue from a market making strategy and usually operate with their own capital. Basically, PDMM on one side will put a maker order of the market and turn over it to the other side at the time that order got filled. PDMM will bag net profits, for each pair of orders being filled.

2
Designated Market Makers

The institutions that are dedicated to recuperating markets competence and naturally trade with their clients’ capital are DMM. On both the buy and the sell side DMM maintain orders at every times and in a methodical fashion, now this makes the method used is quite unique. In simple words, say on the buy side, when an order is filled the DMM will straight away restore that order with an order of the sell side at the most ideal price possible.


Market Making Program for ICO's

By accepting a market maker who offers liquidity on pre-agreed conditions, ICO companies can possibly anticipate the following advantages:

  • Top liquidity : by having sufficient liquidity obtainable in the token, founders and investors can put in or liquidate their spot more with no trouble
  • High trading volume: more interest and trading in the token are attracted with higher liquidity potential because of lower transaction costs and market impact
  • Decreasing possibility of price manipulation : since more capital is required to move prices, controlling the price of a token becomes challenging with advanced liquidity
  • Higher interest in the ICO project : likely listing on higher exchanges and more people trading in the token construct more interest and conversation around the ICO project
  • Easier listing on major crypto exchanges : to list a token on their platform more trustworthy crypto exchanges are more possible knowing that there is a market maker committed in providing liquidity 24/7
TokyoTechie offering best crypto market making services

How Does Crypto Market Making Work?

Market making consists in offering liquidity on a clear cryptocurrency by surrendering both bid and enquire limit orders on a crypto exchange. By gathering the bid-ask spread over multiple trades Market makers make profit. A quick and steady technology and appropriate risk management are necessary to make markets fruitfully.

TokyoTechie is extremely dedicated in market making for utility tokens and cryptocurrencies.

We aim on building long term, sustainable relationships with our clients, whereas most crypto market makers are too costly to be worth it.

  • TokyoTechie’s Solutions

    • In the order books enhancing liquidity depth
    • Between the bid & ask, lowering the spread
    • Trading between pairs and exchanges.
    • Price and stability support
    • Through our full Binance Chain tracking and Ethereum software, tracking (whale) wallets
    • Built in protection features and risk management with Algorithms.
    • At all times, Client manages the custody of their funds. TokyoTechie implements trades with the help of API access and does not need rights of withdrawal to the market making account.
  • What are the benefits of market making in the crypto space?

    An increase in the volatility of the asset will be there as markets that have low down liquidity will normally have extensive bid-ask spreads in their order books. Consequently it makes it more challenging for traders to get a superior price for their trade, and have their orders filled. The development gets influenced hugely because of the overall liquidity of a market and market makers play a huge role in making sure liquidity. Merely stated, the liquidity of an asset is its availability for buyers and sellers to easily trade it at any given time.

    • Enhance order book depth and market liquidity
    • Decreases price instability
    • Help with fair price finding and organic volume
    • More proficient bid-ask unfurl in cryptocurrency exchange order books
    • More synchronized and systematic entry and exits points for traders
    • Noticeably decreases slippage
    • Assists put up big institutional investors
    • Lessen dramatic price fluctuation
  • How TokyoTechie Works

    • Deep examination of the project status, whale wallets and order books.
    • To their market making accounts Client offers API access for the exchanges they are listed on.
    • On a small scale based on our preceding study, we begin testing strategies
    • We start deploying market making strategies, after scrutinizing test outcomes
    • Continues, 24/7 modification of trading plans and follow up by our traders.
    • With project via Wechat, Telegram, Whatsapp, we have direct communication
    • To track developed in trading volumes, P&L, macro tendencies, Biweekly written report is shared
    • To discuss strategy we conduct conference call every 2 weeks