Everyone thinks market making is just quoting both sides and farming the spread, but actually that’s how a lot of traders underestimate the risk.
the painful part is when you copy “pro” liquidity behavior on $BTC or $ETH, think you’re being neutral, then get chopped up because price keeps moving through your quotes. ngl, capturing the spread sounds easy until inventory risk starts cooking you.
real market makers aren’t just placing 2 orders and repeating forever. they’re managing inventory, latency, volatility, fees, and adverse selection every second. the “spread” is only the visible part of the edge.
case study mindset: if $BNB is moving fast and you’re quoting both bid and ask without knowing when to pull liquidity, you’re not market making, ser. you’re becoming exit liquidity for someone faster. that tiny spread can disappear instantly when one side fills and the market runs away.
so the warning is simple: don’t confuse “being on both sides” with being hedged.
what’s your take on retail trying to market-make volatile pairs?
#CryptoTrading #MarketMaking #Binance
the painful part is when you copy “pro” liquidity behavior on $BTC or $ETH, think you’re being neutral, then get chopped up because price keeps moving through your quotes. ngl, capturing the spread sounds easy until inventory risk starts cooking you.
real market makers aren’t just placing 2 orders and repeating forever. they’re managing inventory, latency, volatility, fees, and adverse selection every second. the “spread” is only the visible part of the edge.
case study mindset: if $BNB is moving fast and you’re quoting both bid and ask without knowing when to pull liquidity, you’re not market making, ser. you’re becoming exit liquidity for someone faster. that tiny spread can disappear instantly when one side fills and the market runs away.
so the warning is simple: don’t confuse “being on both sides” with being hedged.
what’s your take on retail trying to market-make volatile pairs?
#CryptoTrading #MarketMaking #Binance