Market maker
Market makers make markets tradable. Without them, bids and asks would be far apart or nonexistent.
Prediction Markets 101 editorial team Updated April 16, 2026 1 min read
Definition
A market maker posts both buy and sell orders on a market, providing liquidity and earning the spread.
Plain-English explanation
On Polymarket, market makers split USDC into YES+NO conditional token pairs and post both sides of the book at a spread. They capture the spread as traders take their orders. Automated strategies dominate professional market making.