How is what banks do with our money market making?
There appears to be no correlation between volume and the magnitude of price movements. The relationship between the two seems to be different on either side until stocks reach a maximum pain point for the outstanding option contracts.
Up .01 on 500k shares traded, down .10 on 5000 shares traded. Stocks warping to a new price due to 50k total shares traded overnight. ETC.
It is easy to fix the price of stocks using high frequency algorithms if you control most of the market's money. It is possible to collude with other big dollar market makers using game theory algorithms or agreeing on strategies directly.
In any case, the theoretical definition of market making should preclude someone from being considered a market maker if they are buying and selling in different amounts thus creating a market where selling or buying an additional share does produce a marginal decrease or increase in price.
The big banks are using public funds to rob the stock market and telling regulators they are "Market Making".
This sounds quite different than the definition of a Market Maker used by the Bitcoin exchanges. To get a Maker's fee instead of having to pay Taker's commission all you have to do is place your limit order within the spread.
I use market orders generally, as the Taker commission is only around 0.2%, but getting paid to be a Maker is pretty nice too.
Basically yes, the exchange is sharing part of the commission they charge for market orders with you for adding liquidity to their platform. Not all exchanges do this, but it's increasingly common.
To clarify, it's part of the commission the EXCHANGE (like OKCoin, BitFinex, BitMX, etc.) charges for trades inside their system.
Bitcoin transaction fees are an entirely different thing. Typically you would pay 0.0001 BTC to transfer money from one wallet to another, regardless of how much is sent. These fees are paid by the sender and received by the miners as payment for adding the transaction to the public blockchain. Eventually (10 - 20 yrs) these fees will be the primary incentive - the source of income - for operating a Bitcoin miner, as the "reward" of newly created bitcoins decreases exponentially to zero.