Market Maker

A market maker is a company or individual who operates in the market for a specific stock or other financial product. The market maker continuously provides buy and sell quotes for this product to ensure sufficient liquidity in the market. Essentially, the market maker ensures that there is always a buyer when a seller wants to sell their stock, and that there is always a seller when a buyer wants to buy a stock. This helps to make the market more efficient and reduce transaction costs.

Market makers can also conduct spread trades by buying stocks at a lower price and selling them at a higher price to make a profit. They can also make money by trading options and other derivatives.