Many people think market makers make money by:
• Pump coin
• Dump coin
• Hay "chicken chasing"
Sounds reasonable… but not quite right.
Market makers don't need you to lose.
They just need you to trade a lot.
And that is the most sophisticated point.
1. The biggest sources of money: Spread and liquidity
A simple truth:
Market makers always place orders on both sides.
• Bid
• Ask
The small difference between these two levels is called the spread.
Sounds small, but:
When volume is hundreds of millions of USD each day
Then that spread is a huge cash flow.
The interesting thing is:
Market makers don’t need to guess the market direction correctly.
They just need the market to move enough.
2. Volatility is a perpetual gold mine
Traders often fear volatility.
Market makers need it.
Because:
• Volatility → more orders
• Many orders → more spread
• Many stoplosses → many liquidations
This is why the market often:
• Sideways for a long time
• Then sweeps both ends
Not by coincidence.
That's how liquidity is gathered into the hands of MM
3. Stoploss is the map
A little insight that few people tell you:
Market makers do not “hunt stoploss” in an emotional sense.
They look at liquidity clusters.
Places with:
• Many people place stop
• Many leveraged positions
• Strong funding imbalance
Those are the areas where prices are almost certainly going to go.
Not because they want to.
Because the liquidity there is too attractive, like a beehive right in front of a bear just waking up from hibernation.
4. Futures are where the real money is
The spot market creates a narrative.
Futures market creates money.
Most of the system's profits come from:
• Funding
• Liquidation
• Futures spread
And the important thing is:
The more traders use high leverage
The more market makers can easily make money
Because a small move is enough to trigger a chain of liquidations.
5. What makes market makers almost unable to lose
Traders only have one position.
Market makers have a whole system.
They see:
• Order book
• Real volume
• Cash flow in and out
• Overall long short position
While traders only see… the chart.
It's like playing poker
Like a person who can see everyone's cards.
6. The biggest mistake of traders
Mistakes are not:
• Using leverage
• Or trade more
Mistake is thinking that:
“The market moves randomly.”
In reality:
The market moves according to liquidity
Not based on Twitter emotions.
The most important insight
Market makers don't need to beat you in one order.
They beat you in thousands of small orders.
And the irony is:
The more you try to recover
The more traders become good liquidity sources.
In summary:
The market is not a casino.
But it's also not a fair playground.
It's like an ocean:
Small fish compete to eat.
Big fish eat the flow.
And market makers…
Are the ones controlling that flow.
