Prediction markets
Market maker
A trader who continuously quotes both a bid and an ask, earning the spread and providing liquidity.
Market makers are why you can buy a contract instantly instead of waiting for a counterparty. They aim to stay neutral, adjusting quotes as inventory builds up, and they widen spreads when uncertainty rises. Polymarket and Kalshi both run liquidity programs that reward makers.
When a market maker steps back, usually around major news, spreads blow out and prices jump on small trades. Those are the moments when a chart looks dramatic but means little.
On Hyperliquid and other perp exchanges, the same role exists and is a large share of whale activity, which is why some high-volume wallets show little directional conviction.
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Frequently asked questions
- What does "Market maker" mean?
- A trader who continuously quotes both a bid and an ask, earning the spread and providing liquidity.
- Why does market maker matter for prediction markets?
- On Hyperliquid and other perp exchanges, the same role exists and is a large share of whale activity, which is why some high-volume wallets show little directional conviction.