What is the definition of a Market Maker?
- Posted on November 20, 2019
- Financial Terms
- By admin admin
A market maker is an individual or firm which connects buyers and sellers of an asset - hence making a market. The market maker will usually hold the asset and then find a seller, and assumes some of the risk of the asset devaluing. To compensate for this risk, they will offer slightly different prices and spreads and make tiny profits on thousands of trades.
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