Polymarket Trading Bot:How to Build a Market Maker Bot: Order Management, Limit Orders, and Partial Fills
Day 5 of 7: Building a Polymarket Market Maker Bot From Zero to Complete In Day 4, we explored how a Polymarket market maker bot calculates bid and ask prices, manages spreads, and adjusts quotes based on inventory. But calculating the right price is only half the job. What happens after your bot places an order? Imagine your Python trading bot wants to buy YES tokens at $0.48 and sell them at $0.52. Before either order fills: If your bot cannot handle these situations, even a good market-making strategy can lose control of its positions. In this tutorial, we'll explore how to build the order-management foundation of a Polymarket trading bot. The examples use Python and Decimal for financial values. They demonstrate the decision-making logic, not a complete integration with the live Polymarket API. Order management is the part of a trading bot responsible for controlling the orders it…