Market maker order
At Commodity Exchange Bratislava, traders has opportunity to insert market maker order into the system. This type of order will keep inserting simple orders to buy or sell carbon credits. You can choose from 2 different type of market maker order:
- Simple market maker order - You will specify volume and spread
- Smart market maker order - You will specify spread, profit and market curve
You can although use the programmic trading to do the market maker by doing arbitrage trades with other exchanges.
With market maker order you can use any guarantee system - Guaratnee system 1, Guarantee system 2, or you can place order at OTC market.
| Guarantee system 1 | Guarantee system 2 | OTC Market |
|---|---|---|
|
Simple MM order Trade EUA Trade CER Trade ERU Trade AAU Trade AAUG Smart MM order Trade EUA Trade CER Trade ERU Trade AAU Trade AAUG |
Simple MM order Trade EUA Trade CER Trade ERU Trade AAU Trade AAUG Smart MM order Trade EUA Trade CER Trade ERU Trade AAU Trade AAUG |
Simple MM order Trade EUA Trade CER Trade ERU Trade AAU Trade AAUG Smart MM order Trade EUA Trade CER Trade ERU Trade AAU Trade AAUG |
Example: My company wants to earn money on EUA. I will then place market maker order into the system, that will place others to buy and sell credits. For example current market price is 15 €. MM order can place bids 1000 EUA @ 14.20,1000 EUA @ 14.30,1000 EUA @ 14.40,1000 EUA @ 14.50, and offers 1000 EUA @ 15.50,1000 EUA @ 15.60,1000 EUA @ 15.70,1000 EUA @ 15.80. After someone buys my 1000 EUA at price 15.50, market will move (into 15.10), new bid will be placed at price 14.60 €, and new offer will be placed at 15.90 €. After someone sell me EUAs at price 14,60 €, market will move to original position and I will have (15,50-14,60)*1000 € : 900 € on my CEB account.