Financial Education

Market Maker

Dealer quoting bid/ask and providing liquidity

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Trading

Market Maker

Dealer quoting bid/ask and providing liquidity

Definition

Market makers provide liquidity by continuously quoting bid and ask prices. They profit from bid-ask spreads and may receive payment for order flow. Their presence improves market efficiency and reduces trading costs.

Related Topics

#liquidity provider #bid-ask spread #market efficiency #dealer

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Category: Trading

Trading concepts cover market mechanics, order types, liquidity, and execution strategies.

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