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Since the exchange functions as a market maker, do they also make money on the spread ? Or is the Ask and Bid an exact match ? Maybe there is no way to know fo
by louprado 10y ago
Since the exchange functions as a market maker, do they also make money on the spread ? Or is the Ask and Bid an exact match ? Maybe there is no way to know for certain without two accounts.
Also do you trade on multiple exchanges to perform inter-exchange arbitrage or for some other reason ?
- mbrookes 10y ago> Since the exchange functions as a market maker, do they also make money on the spread ? Market makers take a spread. They provide liquidity at a cost.
- louprado 10y agoGDAX, for example, has a maker/taker type of fee structure that charges you based on your account volume: https://www.gdax.com/fees https://www.gdax.com/fees There are many ways an exchange can collect fees. An exchange doesn't have to take a spread but it is too tempting since it is easily hidden.