PowerTrade is an easy-to-use crypto options trading platform, allowing traders to maximize return on investment through an intuitive interface that provides better prices and lower margin requirements. At PowerTrade, it’s easy for anyone to start trading with as little as 1 USD and continue trading with simple, fast and mobile-first trading for crypto options.

Mario Gomez Lozada is the CEO of PowerTrade, and Richard Hodges is in charge of Trading & Risk within the company. They recently joined the Bitcoin.com News podcast to talk about the platform, Automated Market Makers (AMMs), and more:

Mario Gomez Lozada, CEO of PowerTrade, is a finance professional and serial entrepreneur with over 20 years of experience in the fixed income, currency and commodity markets. In 2014, Mario founded Liquid.com, one of the largest cryptocurrency exchanges in the world, serving millions of customers worldwide.

Mario began his career in the mid-1990s in the Internet industry where he developed search engine technology based on his master’s thesis in computer science before moving to Tokyo and developing frameworks used as financial systems for a number of number of major banks. After spending 13 years of his career at Merrill Lynch developing cutting-edge software for sales and trading systems, Mario joined Credit Suisse as CIO Japan and Head of Fixed Income IT Asia.

Richard Hodges, Trading & Risk at PowerTrade, is a derivatives, FX and cryptocurrency expert with over 20 years of professional options trading experience. Richard has implemented quantitative trading and financial systems at Morgan Stanley, Citi, etc. Recognized for his technical solutions architecture, Richard has worked for global investment banks and financial exchanges to design and develop mission-critical trading software.

To learn more about the platform visit Power.tradeand follow the team on Discord, Telegram, Twitter and Facebook.

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The Bitcoin.com News podcast features interviews with the most interesting leaders, founders, and investors in the world of cryptocurrency, decentralized finance (DeFi), NFTs, and the metaverse. follow us on itunes, Spotify and google play.

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Market makers or trading desk brokers represent a type of broker who internalizes flows and reverses a transaction submitted by their clients.

The market maker broker only quotes a stream of prices to its clients. These flows may or may not be exactly the same as the prices quoted in the interbank market.

Any order entered by a client is processed internally and never exits to the market, except in rare cases where a market making brokerage firm identifies a client as very high risk and chooses to route the flow to a another liquidity provider.

These brokers generally provide very fast execution, but an inherent conflict of interest is possible due to the brokers earning most of their profits from client losses.

Role of market makers in the forex industry

In the FX space, a market maker quotes two-way prices for tradable currency pairs. In doing so, these market makers literally make the market.

In particular, a forex market maker performs three specific tasks.

This includes setting buy and sell prices in a given currency pair, committing to accept offers at those prices within certain constraints, and taking the resulting exposure on their own portfolio.

In terms of accounting for this exposure in their portfolio, market makers may choose to hedge the exposure with another bank, pending favorable rates.

How fast or slow, or how risky they dismiss will be at their own discretion.

Market makers can make profits through several techniques.

If these entities identify sufficient flow on both sides of their quote, they can simply collect the bid-ask spread.

Therefore, market makers can offset their exposure. Currently, major banks are seeing huge flows of foreign currency transactions from their operations around the world in a multi-trillion-dollar-a-day industry.

Trending Stories

The decentralized exchange dTrade raised $ 22.8 million for a market-making fund designed to provide the ecosystem with higher liquidity, potentially paving the way for wider adoption of DeFi on Polkadot once the DEX will launch later this year.

The funds will allow dTrade to launch with “deep liquidity” backed by some of the largest crypto market makers, the company said on Tuesday. Specifically, the capital will be used to facilitate chain loans to market makers who provide order book liquidity on dTrade. Community members will also have the option to participate in the on-chain program once dTrade is launched, which is expected shortly thereafter. Polkadot concludes parachain auction later this year.

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Disclaimer: Fusion media would like to remind you that the data contained in this site is not necessarily real time or accurate. All CFDs (stocks, indices, futures) and Forex prices are not provided by the exchanges but rather by market makers. Therefore, the prices may not be exact and differ from the actual market price, which means that the prices are indicative and not suitable for trading purposes. Therefore, Fusion Media assumes no responsibility for any business losses that you may incur as a result of the use of such data.

Fusion media or anyone involved with Fusion Media will accept no responsibility for any loss or damage resulting from reliance on any information, including data, quotes, graphics and buy / sell signals contained in this website. Please be fully informed about the risks and costs associated with trading in the financial markets, it is one of the riskiest forms of investing possible.

Decentralized exchange dTrade has raised $22.8 million for a market-making fund designed to provide the ecosystem with higher liquidity, potentially paving the way for wider adoption of DeFi on Polkadot once the DEX launches later this year.

The funds will allow dTrade to launch with “deep liquidity” backed by some of the biggest crypto market makers, the company announced on Tuesday. Specifically, the capital will be used to facilitate on-chain loans to market makers that provide order book liquidity on dTrade. Community members will also have the option to participate in the on-chain program once dTrade launches, which is expected shortly after Polkadot concludes its parachain auctions later this year.

The capital raise benefited from the participation of some of the biggest blockchain companies, including Alameda Research, CMS, Hypersphere, Polychain and DeFiance.

Market makers facilitate smooth opening and exiting positions for traders buying and selling assets in the open market. Market makers essentially place orders to buy and sell tradable assets in order to provide liquidity and ensure that trades are executed at prices as close to their fair value as possible.

Related: Automated market makers are dead

As Cointelegraph reported, dTrade closed a $6.4 million seed round in May this year to build DeFi capabilities on the Polkadot network. The capital raised in the past two rounds has coincided with a surge in derivatives trading, which accounts for the majority of cryptocurrency exchanges, by some estimates.

Crypto’s volatile price swings this year have largely been linked to derivatives. During the Bitcoin (BTC) flash crash in May, crypto liquidations topped $2.4 billion in a 24-hour period, according to to ByBit data. Over-leveraged traders were purged from the market during the extreme downtrend, although recent data suggests open interest in Bitcoin options is on the rise again.

Related: Delta Exchange launches options trading for Solana and Cardano

The crypto derivatives market started to take shape in the second quarter of 2020 but is still in its very early stages. Goldman Sachs has become the latest high-profile multinational to enter the market after expanding the addition of Ether (ETH) options and futures to its trading operations.