The Market Maker algorithm is designed for users who want to execute a large order while acting as a liquidity provider. The primary goal is to get filled passively by placing limit orders, which can lead to better execution prices and lower trading fees.\
\
**How It Works**
* It essentially follows the [**VWAP (Volume Weighted Average Price) trajectory**](/creating-and-submitting-orders/advanced-settings/trajectories/vwap.md), but primarily relying on **passive limit orders** to avoid taker fees and minimize market impact.
* It only resorts to urgent 'taker' fills if the execution falls seignificantly behind schedule, or in other words, breaches the lower discretionary bound.\
In short, the goal of this strategy is: be passive first, only become aggressive when necessary to stay on track.
**When to Use This Strategy**
* **High Taker Fee Markets** – Ideal for trading in environments where **taker fees significantly impact profitability**.
* **Non-Alpha-Driven Trades** – Best for execution-focused trades where **price prediction is not a priority**.
* **High Sensitivity to Market Impact** – Suitable for traders aiming to **reduce order visibility and market influence**.
**Potential Drawbacks**
* **Extended Execution Time** – If market conditions limit passive fills, orders may take **longer than expected** to complete.
* **Uncertain Completion** – Relying solely on passive orders means the strategy may face **execution delays or incomplete fills** in low-liquidity conditions.
This strategy is best for traders seeking **cost-efficient execution** with minimal market impact, particularly in **high-fee environments** where avoiding taker orders improves profitability.
#### **Market Maker Configurations**
| [Trajectory](/creating-and-submitting-orders/advanced-settings/trajectories.md) | [VWAP](/creating-and-submitting-orders/advanced-settings/trajectories/vwap.md) |
| ----------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------ |
| [Passiveness](/creating-and-submitting-orders/advanced-settings/passiveness.md) | 0.02 |
| [Discretion](/creating-and-submitting-orders/advanced-settings/discretion.md) | 0.08 |
| [Participation Rate Target](/creating-and-submitting-orders/advanced-settings/participation-rate-target.md) | 1% *(required)* |
| [Alpha Tilt](/creating-and-submitting-orders/advanced-settings/alpha-tilt.md) | 0 |
| [Max OTC Percentage](/creating-and-submitting-orders/advanced-settings/max-otc-percentage.md) | 0% |
| [Passive Only](/creating-and-submitting-orders/advanced-settings/passive-only.md) | Enabled |
| [Active Limit](/creating-and-submitting-orders/advanced-settings/active-limit.md) | Disabled |
| [Reduce Only](/creating-and-submitting-orders/advanced-settings/reduce-only.md) | Disabled |
| [Strict Duration](/creating-and-submitting-orders/advanced-settings/strict-duration.md) | Disabled |
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