Pure market making
!!! note The pure market making strategy is currently under development and not yet available on Hummingbot.
The diagram below illustrates how market making works. Hummingbot makes a market by placing buy and sell orders on a single exchange, specifying prices and sizes.Figure 1: Hummingbot makes a market on an exchange
- You will need to hold inventory of quote and base currencies on the exchange.
- You will also need some Ethereum to pay gas for transactions on a DEX (if applicable).