market maker

Bid-ask quote setter

A market maker is a firm or individual that stands ready to buy and sell a particular asset, profiting from the difference between bid and ask prices.

Market makers provide liquidity—without them, buyers and sellers would have to wait for matching counterparties.

The market maker quoted $50.25 bid, $50.30 ask.

In securities trading, market makers commit to continuous two-sided quotes, helping ensure orderly markets.

finance

dealer

One who sells goods

electronic trading · specialist · adverse selection

intermediary

dealer

One who sells goods

principal

trading

bid

Offer to purchase

volume · quotation · counterparty · transaction · clearing · settlement · matching · fill · price · scalping

liquidity

order book

Record of pending trades

Categories
Opposites
market role and liquidity function

market makerorder taker

One who records requests

retail investor · passive investor · index fund

trading principal vs. agent relationship

market makerbroker

Transaction intermediary for hire

agent · fiduciary · customer · client · investment advisor

Family

make, market, made, maker, making, marketing, makes, supermarket, markets

Familiarity
Top 500,000
Profile
Used worldwide · Timeless · Rated G