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FOREX ALGOS { }

Market making

Market making – A liquidity-providing strategy where the robot continuously posts both bid and ask orders around the current price. The market maker profits from the bidask spread by buying at the lower bid and selling at the higher ask. In practice, a market-making bot on cTrader might use PlaceLimitOrder(TradeType.Buy, SymbolName, volume, Symbol.Bid, "bidOrder") and PlaceLimitOrder(TradeType.Sell, SymbolName, volume, Symbol.Ask, "askOrder"), and adjust these quotes as OnTick() updates. In MetaTrader, an EA can simulate market making by placing pending buy-limit and sell-limit orders at calculated offsets each tick. High-frequency market-making bots constantly cancel/replace orders to stay at the top of the book. This strategy requires sophisticated risk rules (e.g. inventory limits). In Forex, true arbitrage (buying on one venue/selling on another) is a form of market-neutral making; cBots can also exploit triangular arbitrage by simultaneously trading in multiple currency pairs.