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.

Spread Income

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

Volume Scaling

Profit scales with volume, not market direction

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.

Spread Optimization

Wider spreads during volatility, tighter when calm

Quote Management

Auto-rebalance quotes every 30 seconds

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.

Net Exposure

Keep long and short positions balanced

Dynamic Spreads

Widen spreads to reduce unwanted inventory

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.

Continuous Quoting

Update quotes every 5-30 seconds based on conditions

Smart Hedging

Auto-hedge via correlated or inverse markets

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.

Quote Engine

Intelligent spread calculation and placement

Backtester

Test strategies on 1 year of historical data

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.