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Market Maker Discount / Rebate?

It is common (though certainly not universal) practice for trading exchanges to offer reduced fees (or even a "negative" fee in the form of a rebate) for market makers - those who are providing liquidity to the market rather than taking liquidity away. If I submit an open offer - an order that is not immediately matched - I am acting as a market maker. If somebody later takes my offer, they are acting as a market "taker". 


I think providing a discount or rebate to market makers would greatly increase trading volume and liquidity on the site as it would encourage more market making, thereby increasing the ease with which PredictIt can launch new questions.


6 people like this idea

 NO! market makers are the ones who legally screw the little guy in the NYSE... have the scars...

I think there's a pretty big difference between the NYSE and a "capped" marketplace with a more academic focus. How do you figure that market makers will be able to "screw" the little guy?

BETME how did you plan on trading without liquidity provision?


1 person likes this
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