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Market maker
In one line: A firm that keeps posting buy and sell prices, earning from the spread.
A professional securities dealer or person with trading privileges on an exchange who has an obligation to buy when there is an excess of sell orders and to sell when there is an excess of buy orders.
— CFTC Glossary
In simple words: A market maker steps in to buy when everyone sells, and to sell when everyone buys.
Market makers make sure there is usually someone on the other side of your trade. They quote both a bid and an ask and hope to earn the difference.
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Last checked: 2026-11-04 · Educational, not financial advice.
Education only, not financial advice. No signals. Backtests are hypothetical: real trading can be worse. Past results don't predict future results.