What is the role of a market maker?
What is the role of a market maker? Market makers charge a spread on the buy and sell price, and transact on both sides of the market. Market makers establish quotes for the bid and ask prices, or buy and sell prices. Market makers are typically large investment firms or financial institutions that create liquidity in the market. What is a market maker and how do they make money? Market makers are high-volume traders that literally "make a market" for securities by always standing at the ready to buy or sell. They profit on the bid-ask spread and they benefit...