What Is Market Maker?
Definition and plain-English explanation of "Market Maker"

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.
Related Terms
Paper trading is practising buying and selling stocks or crypto using virtual money instead of real ...
Day trading involves buying and selling securities within the same trading day — sometimes within mi...
Swing trading involves holding positions for several days to weeks to capture medium-term price move...
Short selling is a trading strategy where an investor borrows shares and immediately sells them, hop...
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.