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What Is Market Maker?

Definition and plain-English explanation of "Market Maker"

Market Maker — Trading illustration

A market maker is a firm or individual that continuously quotes both buy (bid) and sell (ask) prices for a security, providing the liquidity that lets other investors trade instantly. Market makers profit from the bid-ask spread and play a crucial role in keeping markets orderly and efficient.

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Market Navigator Glossary — plain-English definitions of 93+ investing and crypto terms. All content is for educational purposes only and does not constitute financial advice.