market makers

Market makers are firms or individuals that facilitate trading in financial markets by providing liquidity. They do this by buying and selling securities, ensuring there are always available options for investors to trade. Essentially, they set prices at which they are willing to buy (bid) and sell (ask) a particular asset, making it easier for others to enter or exit trades quickly. By continuously offering these prices, market makers help maintain an orderly market, reduce price volatility, and improve overall trading efficiency. Their presence is essential for enabling smooth transactions in stock exchanges and other trading platforms.