Trading & Market Structure

Liquidity Provider

Definition

What is Liquidity Provider?

A participant that supplies executable buy and sell interest to a market.

Example in practice

The liquidity provider narrows the ETF's spread by quoting both sides.

Keep learning

The highest price a buyer is currently willing to pay for a security.

The lowest price a seller is currently willing to accept for a security.

The difference between the best available buying and selling prices.

An instruction to buy or sell immediately at the best available prices.

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