> For the complete documentation index, see [llms.txt](https://prestige-capital-docs.gitbook.io/prestige-capital-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://prestige-capital-docs.gitbook.io/prestige-capital-docs/prestige-revenue-generation-layouts/inventory-management.md).
# Inventory Management
**What it is**: Market makers manage their inventory of assets to balance their
positions and minimize risk.
**How it works**: By dynamically adjusting their buy and sell prices, market makers aim
to keep a balanced portfolio, profiting from price movements while controlling
exposure to adverse price changes.
**Bull Market:** They capitalize on rising prices by selling assets at higher prices while
maintaining sufficient inventory to continue trading.
**Bear Market:** They manage the decline by buying assets at lower prices, expecting
to sell them when the market recovers.
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