This content was created by Kardec Trader. This content was uploaded by Kardec Trader. This is a YouTube video titled "The only 'The Algo' #trading" created on November 4, 2025, discussing different types of market matching algorithms, including FIFO and FIFO with lead market maker, and their roles in regulated markets.
There is one algorithm in the market, but it's not the one you think. I'm not talking about the IPDA Vatican City secret Illuminati source tool. I'm talking about the real matching algorithm. All orders in every regulated markets are routed to the exchange from a so called matching algorithm. The first classic matching algorithm is the fifo. First in, first out. So the first order that was put in the book is the first one that will be match with an aggressor. The second type of algorithm is the FIFO with lead market maker. In this one, 40% of the aggressive orders will be granted to a market making firm. One example is Citadel securities who moves around $500 billion of volume per day in exchange. The market maker will always make sure to provide the liquidity both in the bids and in the asks. By the way, this is publicly information.
