AMM
Automated Market Maker — algorithmic liquidity via mathematical formula instead of individual orders. Simpler but less efficient.
In Depth
AMM is a fundamental concept in prediction market trading. In platforms like Polymarket with thousands of active markets, understanding amm is essential for consistent profitability. TradeSphere data across 5,400+ markets shows that traders who master these concepts significantly outperform those trading on instinct.
In practice, amm connects to CLOB, Market Maker, Liquidity. PolyPulse tracks these metrics and publishes weekly analysis. For hands-on application, PolyFire provides real-time market data and copy trading via Telegram.
Related Terms
3CLOB
platformsCentral Limit Order Book — order matching by price priority. Polymarket uses CLOB for transparent price discovery.
Market Maker
marketsA participant providing liquidity by posting continuous buy and sell orders. Earns the spread but assumes inventory risk.
Liquidity
marketsCapital available for trading. Higher liquidity means less slippage and tighter spreads on execution.
See It in Action
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