🔥 «Why do traders lose millions while market makers get rich: you're being played like children — the truth about bots and algorithms that exchanges hide, and most importantly — how to stop being fodder for the market»? Subscribe, let's move on...
Let's break this down: who are they, what are their goals, and what specific tricks do they use.
1. Who are market makers and bots?
Market makers (MM): These are large players (often institutional) who provide liquidity in the market. They are obligated to quote buy and sell prices. They earn from the spread (the difference between the buy and sell price) and commissions. Their actions are relatively predictable and aimed at stabilization.
· Trading bots / ALGO-rithms: These are computer programs that trade according to pre-set algorithms. They can belong to anyone: from large funds to small traders. They create the main "magic" and manipulations.
· Goals: To make a profit. This can be done either by consistently taking the spread (like MM), or by triggering stop losses and liquidating the crowd's leverage, or by pumping and dumping an asset.
