
Market Maker
A market maker is a financial firm or individual that continuously provides buy and sell prices for a particular asset, such as stocks or currencies. They help ensure liquidity in the market by being willing to purchase at the bid price and sell at the ask price, facilitating smoother trading for others. By doing so, market makers help narrow the difference between buying and selling prices (the spread) and enable traders to execute orders quickly. In essence, they act as intermediaries that keep markets active and functioning efficiently.