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How Crypto Exchange Clone Scripts Integrate Market Making

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(@madison-julia)
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Topic starter   [#17888]

The backend framework of crypto exchange clone script includes market making feature which runs parallel to the main trading engine. In general, development teams incorporate market makers into API to enable them to place orders automatically and maintain a balance of orders at both ends of the order book.

 

Developers have to set certain parameters including spread width, frequency of updating orders, position limits, etc. to integrate market making bot into the trading engine in such a way that quotes get adjusted according to the prices change without any human effort. Developers can work in conjunction with the exchange operator for determining these limits on the basis of expected volume of trading and asset volatility.

 

Usually, the transactions made by market makers are not included in the same database as other transactions made by users in most of the crypto exchange clone scripts.

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