What is the definition of a price maker in the context of cryptocurrency trading?

1 answers

• Sahan Kavinda 62Jan 18, 2025 · 10 months ago
  In the context of cryptocurrency trading, a price maker is someone who sets the price for a particular cryptocurrency. They do this by placing limit orders on the exchange, which means they specify the price at which they are willing to buy or sell. Price makers are usually traders who have a large amount of a particular cryptocurrency and are looking to sell it at a specific price, or traders who want to buy a particular cryptocurrency at a specific price. Price makers help to create liquidity in the market and provide opportunities for other traders to buy or sell at the price they want. They are different from price takers, who simply accept the current market price and execute market orders. Price makers are important for maintaining a healthy and efficient market, as they help to narrow the bid-ask spread and ensure that there is enough liquidity for other traders to trade.
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