What is a market making bot?

[abiramid]

What is a market making bot?
An automated trading application called a "market making bot" is made to continuously place buy and sell orders in order to supply liquidity to a market. Profiting from the spread—the gap between the ask (sell) and bid (buy) prices is its aim.
Key Functions:

• Places simultaneous buy and sell orders around the current market price.
  
• Updates prices dynamically based on market movements.
  
• Earns small profits per trade, but operates at high frequency to accumulate gains.
  
• Helps reduce volatility and increase trading volume on exchanges.
  

These bots are commonly used by exchanges, crypto projects, and professional traders to maintain healthy, active markets.