Who are Market Makers in your opinion?

[Ekanayake90]

Who do you think market makers are? Do you have to be a billionaire to be considered as a MM?

[Oshosondy]

You do not have to be rich before you can be a market maker. You can either be a market taker or market maker while trading.

Market takers are those that their orders are filled immediately which can be as a result of using market order or buying at a higher price or selling at a lower price.

Market makers are those that their orders are filled not immediately but it can take some seconds or some minutes or days until the the price they set is reached. Market makers use limit order and set the price lower for buying order or set price higher for selling so that the order is not filled immediately but until the price is reached.

[logfiles]

Once you use a limit order when buying or selling a certain trading pair, you become a market marker in that particular trading pair. So any trader can do that so long as the order size is above the minimum limit. Some exchanges have a minimum of 10 USDT, others have a minimum order size limit of 5 USDT. So it also depends on an exchange.

[cmcbot]

A market maker is a firm or individual that provides liquidity to a market by buying and selling financial instruments, such as stocks, options, or cryptocurrencies. Market makers act as both buyers and sellers, profiting from the bid-ask spread (the difference between the price at which they buy and sell).
The primary role of a market maker is to: Provide liquidity: Market makers ensure that there is always a buyer or seller available for a particular asset, making it easier for others to trade.
Stabilize prices: By buying and selling, market makers help to stabilize prices by reducing volatility and providing a counterparty to trades.
Quote prices: Market makers quote both bid and ask prices for a security, indicating the price at which they are willing to buy or sell.

Market makers operate in various financial markets, including stock exchanges, options markets, and cryptocurrency exchanges. They play a crucial role in maintaining market efficiency and facilitating trading activities.

[OcTradism]

Who do you think market makers are? Do you have to be a billionaire to be considered as a MM?

You can be a billionaire but you get your money from other markets and you only join cryptocurrency market recently. It's not enough to say your are a market maker in this market because you even are facing with risk of losing your own money too.

A market maker must be experienced in this market and usually do market manipulation to get more profit, to be richer, not to be poorer.

As small investor or small trader, we don't actually need to figure out who are market makers. We must focus on our learning and practice, focus on management of risk and capital for ourselves. If we have good management and strategy, we will succeed no matter what market makers do.

[Sebas.tian]

Who do you think market makers are? Do you have to be a billionaire to be considered as a MM?

No, you can start your market with any amount of funds that you know it can reach you to purchase some coins and hold for a long period of term before you will think of releasing them for sale when the bullish season is flowing in the market, and it can make you a billionaire. If you want to be a market maker, you must learn how to purchase profitable coins in the bearish season and hold for long term which is another advantage that is making market makers to make a huge amount of funds from the market when the price hit higher. Now that the price has decreased back to $65,000 in the market, those that want to become billionaires Will not sell their coins in this season, because it will not going to add massive income to their incomes that will turn them to billionaires than to wait for long before they can sell to achieve their target.

[slaman29]

There are 2 approaches to this, I would say. By definition alone, if you've ever done a trade on an exchange using limit orders, then you pay maker fees. Kinda makes you a market maker by default.

But probably the ones that are true market makers are those who place up orders on order books all the time. And you don't have to be a whale to do this. Even back when I was doing forex, putting orders on both sides buy/sell, in different currencies, maybe only $50 worth for every currency, I would say 1000000s of people doing that makes the whole market. Same as altcoins - BTC pairs.

[OcTradism]

There are 2 approaches to this, I would say. By definition alone, if you've ever done a trade on an exchange using limit orders, then you pay maker fees. Kinda makes you a market maker by default.

But probably the ones that are true market makers are those who place up orders on order books all the time. And you don't have to be a whale to do this. Even back when I was doing forex, putting orders on both sides buy/sell, in different currencies, maybe only $50 worth for every currency, I would say 1000000s of people doing that makes the whole market. Same as altcoins - BTC pairs.

On centralized exchanges,  trading fees have two types for Takers and Makers.

Taker fee and Maker fee can be different on different exchanges but usually Takers have to pay higher trading fee than Makers. Two following websites have information on Taker and Maker fees.
https://www.cryptowisser.com/exchanges/
https://exchangewar.info/

[justdimin]

Market takers are those that their orders are filled immediately which can be as a result of using market order or buying at a higher price or selling at a lower price.

Market taker are market makers practically. Yes, in above scenario, you are taking about a small trader and think about a whale, they must be dealing only with market orders to accumulate or sell off to buy/sell immediately. Market makers buy in market orders with higher prices than current price which will result in spike in market and then wait for sometime for others to sell off which will again help market makers to accumulate on lower prices. I have watched how dogecoin prices moved from 30 to 40 satoshi level to 1000+ satoshi levels in the time period of 8 months in 2021.

Do you have to be a billionaire to be considered as a MM?

To give significant impact on market price levels then you must have big money. Other than billionaires, FUD makers are other kind of market movers. For the case of bitcoin market, fundamentals of bitcoin ecosystem is still the market maker as people are still following the 4 year cycle of bitcoin market to predict bullish/bearish trends.

[Oshosondy]

Once you use a limit order when buying or selling a certain trading pair, you become a market marker in that particular trading pair.

If you use a limit order, that does not necessary means you will be a market maker. Assuming bitcoin is at $65500 and you want to buy bitcoin. If you set the limit order to $65550 or a price higher than $65500 while the price did not increased above $65500 or the price that you set. That means you are buying bitcoin at a higher price, the order will be filled immediately and you are a market taker.

[slaman29]

There are 2 approaches to this, I would say. By definition alone, if you've ever done a trade on an exchange using limit orders, then you pay maker fees. Kinda makes you a market maker by default.
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On centralized exchanges,  trading fees have two types for Takers and Makers.

Taker fee and Maker fee can be different on different exchanges but usually Takers have to pay higher trading fee than Makers. Two following websites have information on Taker and Maker fees.

Yeah I know that, I think all traders know that That was my whole point tho  in my post, explaining that the first approach defines who a market maker is

If you make an order on an orderbook, you are only paying a Maker fee, then clearly, you've made a market with your order. That, by literal definition, has made you a market maker.

(Maker fee is always lower, or the same as taker. It's not even usually, it's guaranteed takers pay higher or the same.)

[stompix]

As small investor or small trader, we don't actually need to figure out who are market makers. We must focus on our learning and practice, focus on management of risk and capital for ourselves. If we have good management and strategy, we will succeed no matter what market makers do.

How can you focus on learning and at the same time say that you don't need to figure out what are market makers?
It defies the whole point of learning about it!

Anyhow, I don't see why everyone is overcomplicating this stuff while the name speaks for themselves:
- maker, the ones that put an offer for either sell or buy creating the order book
- taker, the one that takes the first offer available for either his sell or buy at the current price

[el kaka22]

How can you focus on learning and at the same time say that you don't need to figure out what are market makers?
It defies the whole point of learning about it!

Anyhow, I don't see why everyone is overcomplicating this stuff while the name speaks for themselves:
- maker, the ones that put an offer for either sell or buy creating the order book
- taker, the one that takes the first offer available for either his sell or buy at the current price

That is literally the whole thing, it took you just two sentences to explain it, and that's it. I think what "market makers" they mean, is not the people who put out offers and people who take those offers, I think they are talking about "people who can manipulate the market", like whales for example.

I know it may sound complicated, because it ISN'T what that means, people confuse terms sometimes, but market maker may mean someone who makes the price go down or up, or at least someone who tries to. That seems like the most common way, and I believe that we are going to be doing just fine about it. I think it should be noted that we are going to end up with something that will take a while, and we need to remember what we are doing while we are here as well.