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The bots modify the bid-ask spread according to market conditions, thereby managing market volatility in market making bot development. During high volatility, they widen the spread to reduce risk from rapid price changes. They also employ stop-loss strategies to automatically halt trading during extreme fluctuations, protecting from large losses. By continuously monitoring price trends and liquidity, the bot ensures effective trading in even the most unpredictable markets.

For more details - https://www.clarisco.com/crypto-market-making-bot-development 

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