Market Maker
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A market maker is a trader who stands ready to buy or sell a given security or derivatives product, thus maintaining a firm bid and offer price. Over-the-counter dealers of this type are called "market makers," while in securities exchange trading they are generally called "specialists." Futures and options exchanges often have market makers assigned to various product listings to assure that a deeper pool of liquidity is available as market participants enter and exit the market. [1]
References
- ↑ Dictionary of Finance and Investment Terms, Fifth Edition
