What is Binance Market Maker Bot
Financial markets fluctuate throughout the year with the influence of many factors. In these situations, the market stagnation and price drop threaten the value of investors' property, and people sell assets quickly to avoid further losses. As a result, the number of sales orders increases, and the market faces the risk of being locked.
In this situation, the companies affiliated with the brokerages buy assets to prevent market stagnation and its flow. In cryptocurrency markets, this work is done by the market maker robot, using this type of bot, purchases and sales are made automatically, and prices gradually reach equilibrium.
What is a trading bot?
A trading bot is an automatic computer system designed and launched by developers and programmers familiar with financial affairs and the cryptocurrency market. In making this intelligent software system, Algorithms, tools, and investment strategies are used and help users to buy and sell and earn profit without the intervention of human emotions only based on technical analysis of the market and with a high speed of action. Unlike humans, trading bots can operate in the market 24/7 according to a predetermined strategy and buy and sell quickly.
What is the concept of a market maker in cryptocurrency?
Market Maker is a type of investment strategy in traditional and new financial markets such as the stock market and cryptocurrencies. This strategy provides liquidity and fills the order book by creating new buy and sell orders.
As a result of this strategy, market activists, buyers, and sellers can finalize their buying and selling orders at the desired time, and the market will flow. Finally, the market maker strategy plays an important role in all kinds of financial ecosystems by creating trust in the market.
What is a cryptocurrency market maker bot?
Like other financial markets, the cryptocurrency market maker bot is a particular trading strategy. In this automatic trading strategy, when the market is facing severe fluctuations and price drops, it automatically starts to register purchase orders, thus maintaining the market's liquidity and keeping the flow of transactions in it.
New cryptocurrency exchanges facing a lack of liquidity need a market maker bot to attract investors and encourage users to buy and sell. Unlike traditional markets in which companies affiliated with brokerages play the role of market maker, in the cryptocurrency market, the market maker bot is not necessarily dependent on the exchange and can operate independently. However, the activity of a trading bot in the exchange requires permission from the exchange.
What is Binance Market Maker bot?
Binance exchange has become one of the most popular cryptocurrency trading platforms by providing various facilities. This exchange supports various coins and advanced trading tools to help beginner and professional users and traders take advantage of various trading opportunities and earn profit. To improve the facilities of the exchange, provide a better trading experience and increase its liquidity, this exchange has designed and launched the Binance Market Maker bot. Experts and developers of Binance exchange specially design this market maker bot.
Since providing a high-quality user experience for Binance developers is very important, this exchange recently launched the Binance Futures Market Maker Program. This program allows qualified market makers to benefit from Binance maker fee rebates. Market Makers who have a proper marketing strategy and their monthly trading volume in Binance Exchange or other exchanges is greater than the amount specified by the Exchange, will participate in the Binance Market Maker Program.
What is Binance FUTURES trading bot?
Using the Binance Market Maker bot
To use the facilities and trading tools of the Binance exchange and experience trading in the largest dedicated cryptocurrency exchange, you must first register in this exchange. After completing the process of creating a user account and logging in to your panel, you can connect the bot to your exchange account through the API key and use the Binance Market Maker bot services.
Using the Binance Market Maker bot, like other robots offered in this exchange, does not require downloading and installing software, and the robot works as an in-app platform. After connecting to the bot, you need to go through the following steps:
Select the desired cryptocurrency pair
You must select the cryptocurrency pair you intend to trade through the Binance robot at this stage. You will earn more profit by choosing a cryptocurrency pair that allows you to trade on a larger scale. As a result, we can say that BTC/USDT and ETH/USDT cryptocurrency pairs are more suitable options due to the popularity of Bitcoin and Ethereum.
Setting up the Binance Market Maker bot
After choosing the cryptocurrency pair, it's time to set up the market maker robot. Using the available settings, you need to specify the average price based on which the bot will execute the order to buy or sell cryptocurrency.
Intelligent risk management
The use of risk management tools such as the Stop Loss option and other automatic risk management tools are the main part of any trading bot software. These tools prevent losses to the user by timely buying and selling due to market price changes.
Testing the bot using the Backtesting option
You can test your trading strategy using the backtesting option of the Binance Market Maker bot and use it to measure the success rate of the robot's performance.
Testing the bot in the main market
After your market maker robot has successfully passed the first testing stage, it is time to run and test the bot in the main market. For this, it is better to try the bot with a small investment and check its success rate.
Monitor the performance of the Market Maker bot
It is necessary to monitor the performance of your bot at all stages. Leaving the bot hoping to make a profit is completely wrong and will never bring you any profit, so it is necessary to regularly check the bot and change the settings if necessary to get better results.
Market Maker bot is an automated trading strategy in the cryptocurrency market. Based on this strategy, the bot buys and sells during market fluctuations, preventing the market from locking. This investment strategy provides liquidity and fills the order book by creating new buy and sell orders.
What does market maker mean in financial markets?
After the investors sell assets due to the decrease in the asset price, the companies affiliated with the brokerages buy the shares to move the market. This strategy is called market maker or marketer.
What is the responsibility of the market maker bot in the cryptocurrency market?
New cryptocurrency exchanges facing a lack of liquidity need a market maker bot to attract investors and encourage users to buy and sell. The market maker bot acts like a market maker in the traditional market and moves the market by buying and selling coins.
How to use Binance Market Maker bot?
You can use Binance Market Maker bot without downloading and installing it. All you have to do is connect the bot to your exchange account through the API key and use the services of Binance Market Maker bot.