What do market makers do in prediction markets?
Why some traders quote both sides, and how platforms reward them.
ExplainerQuoting both sides
Market makers place orders to buy and sell at the same time. This means other traders can always find someone to trade with.
Tighter spreads
By competing on price, market makers narrow the gap between buying and selling prices, which makes trading cheaper for everyone.
Deeper markets
More orders at more prices means traders can trade larger amounts without moving the price much.
How platforms reward them
Exchanges often reward market makers with fee rebates or a share of daily reward pools, scored on spread and uptime. See liquidity incentives in the Rewards Engine.
