UPDATE HOURLY: Market Maker Profits!

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Check out this action on BTC-PERPETUAL on Deribit. This market maker is making many individual trades within a fraction of a second and creating a steady, predictable stream of revenues from high-frequency trading in a way that humans simply would not be able to replicate.

What’s it like to trade $1 million dollars USD in less than a few hours? Read my first-hand account, using less than $300 equity, here! A side effect of being Chief Liquidity Officer for Coindex Labs (or maybe even the intended effect) is that I get to throw around a lot of liquidity. For fun and profit!

Market makers take advantage of tiny incremental gains on the difference in bid and ask price, buying low and selling high. On futures markets like BitMEX, Deribit, and many others, they can also gain a tiny fraction of the trade’s value if they’re the maker of the trade — meaning they add liquidity to the market rather than take from it. When you’re posting an order to the orderbook and it’s not immediately bought or sold, but rather someone else…