Market Maker
A Market Maker is a financial professional or firm that provides liquidity to markets by being ready to buy and sell securities at any time. They help ensure that there is always a market for a particular asset, which can reduce price volatility and improve trading efficiency. Market makers profit from the difference between the buying price (bid) and the selling price (ask), known as the spread.
By continuously quoting prices and executing trades, market makers facilitate smoother transactions for investors. They play a crucial role in various markets, including stocks, bonds, and cryptocurrencies, helping to maintain orderly trading conditions and enabling investors to buy or sell assets more easily.