Market Making Work Order Allocation:#
5-7 work orders will be launched in different time periods within 24 hours, and profits will be allocated based on different operating times. After full investment, a return of 1.9%-2.1% can be obtained, and the USD of the completed work order will be immediately returned to the wallet.
According to the "allowed joining time" of each work order, set an alarm in advance and join the work order with one click when the time comes.
Principal earnings can be withdrawn at any time with a 3% handling fee.
Many people in the group have been playing for more than a year, and BSEX has real revenue and real benefits to support it.
BSEX Operation Logic#
Let me explain the role of "market makers" in the market, the risks involved, whether the platform will run away, and how our work orders are generated.
Here are a few of the most concerned questions:
1: What is a market maker? How does it make a profit?
2: Where does the income from our work orders come from? Will there be any losses or loss of income from the work orders?
3: Platform risks and running away issues
First, let's talk about market makers. Market makers can also be called market creators or market makers.
Simply put, they are people who can provide liquidity in the market. Let me explain what liquidity means.
If a certain asset has frequent trading activities and there are many buyers and sellers, it means that the asset has high liquidity.
On the contrary, if the trading activities are sluggish and there are few buyers and sellers, it means that the market has low liquidity.
Liquidity also refers to the ability to quickly trade assets in the market without causing drastic fluctuations in asset prices.
The depth of liquidity in a pool will affect the cost of our transactions.
Therefore, market makers or quantitative teams are needed to create markets for exchanges, increase liquidity, and continuously update asset prices to narrow the price difference.
If you are interested, you can compare the order books of each exchange. The differences can be seen from the order books. If the price difference is small and the order volume is large, it means that the liquidity of the exchange is sufficient.
In plain terms, market makers act as intermediaries, providing reasonable prices to both buyers and sellers and earning fees and price differences.
Let me give you an example. Suppose you want to sell a car and exchange it for cash, but you haven't reached your expected price or no one is asking you. It may take a month to sell the car. At this time, a used car dealer appears. The dealer buys the car from you at a reasonable market price and then sells it at a higher price than the price they bought it for.
This is market making!
So market makers have three main sources of income:
- Price difference between buying and selling
- Commission for providing liquidity to the exchange
- Rebates on transactions
These are also the sources of income for our work orders and the mechanism for generating profits, which you often ask about!
Now let's talk about the source of work orders. Some people have asked whether work orders will incur losses or loss of income.
What do market makers do in exchanges? They constantly update the buying and selling prices of assets to maintain the stability of the assets and earn the price difference.
Let me give you an example. If a market maker sets a buying price of $100 and a selling price of $101, when someone sells at a price of $101, the market maker buys at $100 and earns a profit of $1 from the price difference. Similarly, when someone buys at a price of $100, the market maker sells at $101 and also earns a profit of $1 from the price difference. This is the profit model of market makers!
Although the profit from a single order may seem low, with automated trading systems, thousands or even millions of transactions can be executed in a day, resulting in significant overall profits.
As long as the quotes are reasonable, they are allowed by the exchange. Moreover, once becoming a market maker for the exchange, the exchange will provide certain transaction rebates to the market maker.
By increasing trading volume and speed, more profits can be locked in. However, BSEX adopts a cooperative market-making approach.
The so-called cooperative market-making is the source of our work orders, allowing us to participate. There will be opportunities to join work at different times of the day, and profits will be generated after joining the work.
BSEX provides liquidity on these exchanges, and in return, the exchanges provide corresponding rewards to BSEX. At the same time, BSEX can earn the price difference between buyers and sellers on the exchanges and provide corresponding rebates to those who participate in cooperative market-making. This achieves a win-win situation for all parties.
This is also the current operating model of many companies, S2B2C. S represents a powerful supplier platform, B represents businesses that directly serve customers, and C represents customers. However, the relationship between suppliers and businesses is not a simple cooperation.
Some may ask, "If the profit is so high, why doesn't the platform use its own money? Why does it share the profit?"
Because the larger the capital of the market maker, the larger the trading volume and the greater the profit that can be generated. Many quantitative teams also open their strategy models for others to use, but in reality, they earn much more profit than what they offer to users.
Now let's talk about the risks of market makers and whether the platform will run away.
What are the risks? I have listed a few to discuss with you.
- Account security
- Exchange downtime
- Issues with the automated trading system's strategy
First, let's talk about account security. The concern is that the exchange may be hacked. Therefore, BSEX chooses the top ten reputable exchanges and regularly assesses their risk management capabilities.
For example, when Huobi encountered many negative news before, many market makers temporarily withdrew from Huobi. This reflects the risk assessment of each market maker for the exchange.
Next, exchange downtime can also cause losses for users.
For example, the cloud servers of OKEX and GATE, two top ten exchanges, went down recently, resulting in the suspension of trading or liquidation (which had the greatest impact on contract users). For market makers, because they provide bid and ask prices, there are rarely any losses. Moreover, major exchanges have market maker protection mechanisms. If you are interested, you can check the announcements.
Lastly, there is the issue of the strategy of the automated trading system.
Because the strategies of each market maker are different, although most top market makers have low, medium, and high-frequency trading strategies, the content of the strategy script code can vary greatly. A bad strategy can result in no profit or even losses.
Most trading firms adopt market-making hedging, which can be further divided into spot contract hedging, spot options hedging, and asset allocation hedging across all varieties. In simple terms, it can be called hedging.
Therefore, the strategies of each market maker are constantly being optimized and improved to adapt to this ever-changing market. For example, incorporating trends, grids, high-frequency trading, and more.
Although BSEX is considered a mid-generation market maker in this market (established market makers have at least 4 years of experience), it also has its own trading strategies to ensure stable and profitable operations.
The most worrying issue for everyone is whether the platform will run away. This issue has been raised in the group before.
In essence, why did a company initially establish itself? It is definitely to make long-term profits in this market. The premise for making profits is what kind of services it can provide to this market and what problems it can solve.
If the services it provides can benefit all three parties, it naturally will not do anything harmful to others because the intentions are different.
So why do many exchanges collapse and run away during bear markets? Most of them misappropriate funds and have a shortfall in their accounts. They earn fees, coin fees, and the losses from contract liquidations. For exchanges, they can definitely support their employees.
Take FTX as an example. The main reason for FTX's collapse was the misappropriation of funds. And why were there funds available for misappropriation? It's because FTX has many high-yield projects for pledging and borrowing, earning an annualized interest rate of 9% to 12%. This is one of the reasons.
So, what does FTX use to pay users' profits? It's similar to banks. When we do fixed-term wealth management in banks, banks use our money to do other investments or lend to others, and then pay us the profits according to the agreed interest rate.
And the most crucial reason is that FTX lent more than half of its assets to Alameda for high-risk investments, which reflects the insufficient risk management capabilities of the exchange.
On the other hand, BSEX is simply a market maker and does not have high-yield financial products like those offered by exchanges. Of course, there is no opportunity for misappropriation. We can withdraw funds at any time without any lock-up issues. And where does the profit of market makers come from?
- Price difference between buying and selling, which is the main source
- Rebates on transactions
- Service fees
Recently, BSEX has also made some updates. I don't know if you have noticed. On May 20th, BSEX will issue a presale token called "bsb", and we can receive token rewards by participating in ecological construction. This is also a considerable income!
· If you have any questions, you can contact me (please indicate the purpose)
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If you encounter anything you don't understand, feel free to contact me.