Market Making

Summary of the KXCO Market Making business unit

Market-making consists in providing liquidity on a market by submitting both bid and ask limit orders on an exchange. Market makers make a profit by collecting the bid-ask spread over time in multiple trades.

Fast and stable technology and proper risk management are essential to make markets successful. Markets that have low liquidity will generally have wide bid-ask spreads in their order books that can increase the volatility of the asset.

Therefore, it makes it more difficult for traders to get a good price for their trade and have their orders filled. The overall liquidity of a market greatly influences its growth, and market makers play a big role in ensuring liquidity. Simply stated, the liquidity of an asset is its availability for buyers and sellers to easily trade it at any given time Increasing organic volume and attracting more investors and traders.

Kxco acts as a trusted partner for institutions and individuals globally looking to deploy their capital and enhance their liquidity. We create strategies to help you optimize your unique investment objectives. We are uniquely capable of reaching across all asset classes from Crypto to FX, Equities, and beyond.

Kxco market makers play an important role in increasing the accessibility and liquidity of cryptocurrencies to traders, investors, and market participants around the world. Market making is an activity whereby a trader simultaneously provides liquidity to both buyers and sellers in a financial market.

Liquidity is the degree to which an asset can be quickly bought or sold without notably affecting the stability of its price. With our market-making activity, your token will have a tightly maintained spread and the order book will be deeper and thus more stable preventing violent price swings. This will dramatically reduce slippage, attract more market participants, and be able to accommodate large institutional investors.

Market-Making Program for Token Projects

By adopting a market maker who provides liquidity on pre-agreed terms, token companies can potentially expect the following benefits:

Higher liquidity: by having enough liquidity available in the token, investors and founders can invest or liquidate their positions more easily

Higher trading volume: higher liquidity potentially attracts more interest and trading in the token due to lower transaction costs and market impact

Lower probability of price manipulation: higher liquidity makes it more difficult to manipulate the price of a token since more capital is needed to move prices

Higher interest in the token project: more people trading in the token and possible listing on bigger exchanges create more interest and discussion around the token project

Easier listing on major crypto exchanges: more reputable crypto exchanges are more likely to list a token on their platform knowing that there is a market maker committed to providing liquidity 24/7

Market-Making Program for Crypto Exchanges

We can support both established and new crypto exchanges to help them achieve the following potential benefits:

Initial review: we have an initial conversation with the exchange to understand their unique situation and define the objectives in terms of liquidity provision.

Market-making program definition: we agree with the exchange on a suitable market-maker program. In particular, we define traded cryptocurrency pairs, with large or small traded volumes, and quoting parameters and commitment.

Liquidity provision: we provide 24/7 liquidity on the crypto exchange based on the agreed customized market-making program.

Higher trading volume: traders are more likely to trade a cryptocurrency if there is enough liquidity available because of lower market impact and execution costs

Lower probability of price manipulation: higher liquidity makes it more difficult to manipulate the price of a token since more capital is needed to move prices

Higher interest in the crypto exchange: usually liquidity attracts more liquidity, and at the same time more interest from traders and associated revenues for the exchange

We can maximize the listing results through a well-thought-out listing strategy

Kxco has direct access to the almost impossible-to-reach top exchanges to introduce your project for listing. When we make an introduction as a trusted market maker it increases the project's chances of getting listed because the exchange will feel confident that a healthy market for the token is the priority and will be maintained by Kxco. Listing fees on most exchanges are very expensive. We can negotiate the best deal.