đ $éŸèŸ â What Is the Market Maker's Real Strategy? đ
Market makers may have two key objectives:
đ 1. Pump and Sell They want to push up the tokens they hold and sell at higher prices. But when too many traders are already positioned long, pumping the price further could allow more traders to profit. So, they may change tactics and encourage retail traders to go long instead.
đ 2. Distribute and Exit By creating volatility and repeatedly moving the price up and down, large holders may gradually distribute their tokens and exit their positions.
The real question is: Are retail traders riding the trend, or becoming exit liquidity? đ
#Crypto #Trading #MarketMakers #BinanceSquare
Market makers may have two key objectives:
đ 1. Pump and Sell They want to push up the tokens they hold and sell at higher prices. But when too many traders are already positioned long, pumping the price further could allow more traders to profit. So, they may change tactics and encourage retail traders to go long instead.
đ 2. Distribute and Exit By creating volatility and repeatedly moving the price up and down, large holders may gradually distribute their tokens and exit their positions.
The real question is: Are retail traders riding the trend, or becoming exit liquidity? đ
#Crypto #Trading #MarketMakers #BinanceSquare