Market Making#073

Spread-Capture Re-Pegging on Wide Books

In markets that are chronically wide and have few competing market makers, you post just inside the existing spread to become the best bid or ask, then keep nudging one tick inside any new competitor. Because the spread stays wide, each round trip earns a meaningful margin. The edge is harvesting the illiquidity premium in neglected long-tail markets before other makers show up.

What you need to run it

Scanner ranking markets by spread width vs maker competition
Auto-peg/undercut quoting with min-margin floor
Per-market fill and turnover monitoring
Small capital spread across many thin books

Where this applies

Markets on Polymarket where spread-capture re-pegging on wide books is the natural play:

Will a magnitude-7 earthquake hit California in 2027?
Will the 2026 Nobel Peace Prize go to a named individual mediator?
Will the president of a named country resign before 2028?

Capabilities this demands

Custom code / APIPatienceData ingestionRisk management

At a glance

CategoryMarket Making

Requirements4

CapabilitiesCustom code / API, Patience, Data ingestion, Risk management

VenuePolymarket (CLOB, Polygon)

Build it

Related market making strategies

This is documentation, not advice. Poly Research & Robotics publishes how these strategies work because the method should be checkable — not as a recommendation to trade them. See the full strategy database (147 strategies) or the data resources directory.