Market Makers
Growmore invites Market Makers across the globe to contact us to distribute, promote and sell our crypto currency. We believe in a participative and reward based approach and look forward to hearing from innovative crypto Market Makers.
Providing Liquidity
Movements of currency pairs are measured in the order of low decimal places. Such small moves require a lot of capital to turn into reasonable profits. Many traders cannot afford these amounts, which are necessary to provide enough liquidity for the markets to move. The role of Market Makers is to bridge this liquidity gap and make trading accessible to retail traders.
Matching Orders
The ordering process in trading is a “zero-sum” game. This means that buyers are matched to sellers and vice versa. The Market Maker searches the market for buyers and sellers of a currency pair at a particular volume, then matches a buy order on a currency of a particular volume to a sell order on the same currency with the same volume. However, there are occasions when it may be difficult to get an exact match for the trader’s order. This is where Market Makers can step in to act as a buy or seller of last resort. In other words, market makers “make the market happen”, thus eliminating any delays that traders may have in order fulfillment.
Stabilizing Spreads
Without the influence of Market Makers to stabilize spreads through the maintenance of liquidity, it would be difficult for spreads to be kept low and fixed. However, since Market Makers assume this exposure and then fix prices for the traders, spreads are kept low and fixed, thus resulting in cost savings for retail traders when executing trades. Furthermore, this also provides better entry points for retail traders.
