Market maker
Last reviewed 2026-08-07
Market maker — definition
A trader or firm that continuously posts both bids and asks, earning the spread in exchange for providing liquidity.
Most heavily-traded prediction markets have professional or algorithmic market makers tightening the spread.
Maker fee tiers exist on Kalshi to incentivize this behavior.
Learn more: How prediction markets work
See also
Frequently asked questions
What does market maker mean in prediction markets?
A trader or firm that continuously posts both bids and asks, earning the spread in exchange for providing liquidity.
How does market maker work in practice?
Most heavily-traded prediction markets have professional or algorithmic market makers tightening the spread.
Sources & further reading
- CFTC — Event contracts explainedU.S. Commodity Futures Trading Commission
- Kalshi — how prices and settlement workKalshi
- UMA Optimistic Oracle documentationUMA Protocol
Last reviewed 2026-08-07 · CollegePredictionMarkets.com