Building a Market Making Bot: Automating Modern Market Liquidity

Market making bot development aims at creating automated systems that consistently buy and sell orders to offer liquidity and catch bid ask spreads in financial markets. Real time market data is examined by these bots, inventory risk is managed and dynamic price modification depending on volatility, order flow and predetermined tactics is carried out.Using effective risk controls, latency optimization and extensive backtesting a market making bot can run effectively over equity, forex or cryptocurrency markets to enable traders to expand tactics while minimizing human and emotional decision making.