Market Participants

Market Maker

Definition

What is Market Maker?

A dealer that continuously quotes prices at which it is willing to buy and sell.

Example in practice

The market maker posts both a bid and an ask for an ETF.

Keep learning

A person or firm that executes securities transactions for clients.

A person or firm that buys and sells securities for its own account.

A firm that acts as an agent for clients and as a principal in its own trades.

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

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