How does one become a Market Maker


#1

I’d like to know how would I become a market maker on your platform? is it just a matter or placing two limit orders, one buy and one sell, at the same time?


#2

Once you’ve deposited your funds you are ready to trade on Radex. There are two ways to go about it. You can either create an order and become a market maker, or you can trade against a created order and become a market taker.

If you want instant liquidity you can trade against an already open order by clicking Buy or Sell next to the order that you like. If you do decide to go this route you’ll have to pay a small fee of 0.1% of the amount of purchase. Unlike other exchanges like Poloniex, GDAX or EtherDelta we do not take this fee to ourselves. Instead this money goes to the person who created the order on Radex as a reward for bringing liquidity to the market. At the end of the day, it was that person that created a service for you - they got on Radex and created an order that you could instantly use, and it’s only fair that you leave them a small tip.

If you want to earn money doing market making on Radex you’ll want to create orders at a price that people will find fair and will want to trade for. When somebody buys a part of your order you will receive 0.1% of their purchase back as a reward for providing liquidity. For example, if you create a Buy order to purchase 1000 ETH worth of tokens you will receive 1 ETH back once the order sells out.

You do not get the 0.1% market maker bonus if nobody wants to trade against your order, so make sure you set a competitive price.