01 / BASICS

What Is Market Making?

Place bids and asks on both sides of the market. Collect the spread between your buy and sell prices. Generate consistent returns from volume.

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Spread Income

Bid $0.65 / Ask $0.72 = 7 cents per round trip

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Volume Scaling

Profit scales with volume, not market direction

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Liquidity Premium

Traders pay you for instant fills. No delay.

2.1%
Avg spread collected
$8.4M
Daily Polymarket volume
14%
Monthly MM returns
24/7
Market hours
order book manager
15:42POSTBID 1000 YES @ 0.64
15:42POSTASK 1000 YES @ 0.72
15:43FILLASK 342 YES @ 0.72 [buyer]
15:44FILLBID 658 YES @ 0.64 [seller]
15:45PROFITSpread collected: $63.20
02 / QUOTING

Setting Up Market Quotes

Post bids and asks with optimal spread sizing. Adjust quotes dynamically based on volatility, inventory, and fill rate.

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Spread Optimization

Wider spreads during volatility, tighter when calm

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Quote Management

Auto-rebalance quotes every 30 seconds

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Fill Tracking

Monitor hit rate on bids vs asks

03 / RISK MANAGEMENT

Managing Inventory Risk

Don't get directional. If you hold too many YES shares, the market drops and you lose. Balance inventory with hedging and position limits.

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Net Exposure

Keep long and short positions balanced

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Dynamic Spreads

Widen spreads to reduce unwanted inventory

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Hedge Trades

Offset inventory on other related markets

Position Tracking
Live
Market
Long
Short
Net
Fed Rate Hike Jun
+2100 YES
-2050 NO
+50 YES
Bitcoin >100k
+5600 YES
-5400 NO
+200 YES
Trump Approval
+1800 YES
-1950 NO
-150 YES
Oil Price Q2
+3200 YES
-3100 NO
+100 YES
Quote
Fill
Hedge
Rebalance
Profit
$ polytragent market-make --strategy dynamic
Markets: 12 active | Spread: 2.1%
✓ 48 fills this hour
✓ Inventory balanced
04 / AUTOMATION

Automated MM Strategy

Deploy a fully automated market making engine. Quote continuously, rebalance inventory, hedge across markets, and collect spreads 24/7.

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Continuous Quoting

Update quotes every 5-30 seconds based on conditions

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Smart Hedging

Auto-hedge via correlated or inverse markets

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Inventory Control

Dynamically adjust spreads to manage positions

05 / TOOLS & SYSTEMS

Market Making Toolkit

Everything you need to run a professional MM operation: quote engines, inventory managers, hedging tools, analytics, and backtesting.

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Quote Engine

Intelligent spread calculation and placement

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Backtester

Test strategies on 1 year of historical data

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Analytics Dashboard

P&L, Sharpe, fill rates, volume metrics

Quote Engine
Dynamic spread logic
mm/quotes.py
Inventory Mgr
Balance positions
mm/inventory.py
Hedging System
Cross-market hedges
mm/hedging.py
Analytics
Live performance metrics
mm/analytics.py

Start market making

Deploy automated MM in minutes. Collect spreads and generate consistent returns from Polymarket volume.

Get started →
14% monthly returns 24/7 automation Hedge included
$ polytragent mm-deploy
const mm = new MarketMaker()
await mm.connect(wallet)
mm.setSpreadStrategy({
minSpread: 0.015,
volatilityAdjust: true,
hedgeEnabled: true
})
→ MM active on 12 markets

Risk Disclaimer: Prediction market trading involves significant financial risk. AI-powered research does not guarantee profits. Past performance is not indicative of future results. Polytragent is a research tool, not a financial advisor. Only trade capital you can afford to lose.