Who are Market Makers? The culprits behind your stop losses.
When you trade, don’t think you’re trading with another person. In 90% of cases, your counterparty is an (Algorithmic) (Bot) from large financial institutions, known as Market Makers #WriteToEarnUpgrade MM#Write2Earn . 🔸 White MM - these are silent heroes. They place thousands of Limit orders to provide instant liquidity. Their profit comes from the spread and high volume. 🔸 Dark MM - this is the dark side of the unregulated cryptocurrency world. Projects hire MM to fix prices, paying them rights to buy tokens at a low price. Manipulation cycle: Bots trade with themselves to fake volumes and get into top trends. They push the price to create FOMO among retail investors. The market maker exercises its right to buy at a low price and immediately dumps tokens on investors at a high price. The profit is huge, while the token price then drops sharply. 🔸 Signs of market manipulation: The price rises vertically, stays in place, then drops vertically back to the start. Abnormal long spikes that wipe out Stoplosses on both sides – Long and Short. High trading volume, but the price does not change. 🔹 Never think this is a fair game. You are fighting supercomputers that know exactly where your Stoploss is. Before investing in low-cap tokens, research who the market maker is. Before investing in a low-cap coin, do you research who the market maker behind it is? News is for reference only and not investment advice. Please read carefully before making a decision. $BNB
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Who are Market Makers? The culprits behind your stop losses.
When you trade, don’t think you’re trading with another person. In 90% of cases, your counterparty is an (Algorithmic) (Bot) from large financial institutions, known as Market Makers #WriteToEarnUpgrade MM#Write2Earn .
🔸 White MM - these are silent heroes. They place thousands of Limit orders to provide instant liquidity. Their profit comes from the spread and high volume.
🔸 Dark MM - this is the dark side of the unregulated cryptocurrency world.
Projects hire MM to fix prices, paying them rights to buy tokens at a low price.
Manipulation cycle:
Bots trade with themselves to fake volumes and get into top trends.
They push the price to create FOMO among retail investors.
The market maker exercises its right to buy at a low price and immediately dumps tokens on investors at a high price. The profit is huge, while the token price then drops sharply.
🔸 Signs of market manipulation:
The price rises vertically, stays in place, then drops vertically back to the start.
Abnormal long spikes that wipe out Stoplosses on both sides – Long and Short.
High trading volume, but the price does not change.
🔹 Never think this is a fair game. You are fighting supercomputers that know exactly where your Stoploss is. Before investing in low-cap tokens, research who the market maker is.
Before investing in a low-cap coin, do you research who the market maker behind it is?
News is for reference only and not investment advice. Please read carefully before making a decision.
$BNB