Hint mode is switched on Switch off

Market maker

Category — Market Participants

Market maker is a market participant who is ready to buy and sell assets on a regular basis at a public quote, earning on the spread (the difference between the bid and ask prices). The market maker’s job is to create and maintain liquidity in times of weak market bid and ask.

Market makers are an integral and necessary part of the market. They do not always make money on price movements, but they provide the comfort of transactions, even when traders do not know who they are dealing with on the other side.

Main responsibilities of Market Makers:

    - retention of quotes in a certain range;

    - provision of additional liquidity as required;

    - preventing price gaps.

There are two types of market makers:

- Order takers. They trade as an intermediary for the client.

- Order makers. They track the dynamics of movements of certain assets, making forecast price expectations based on this data.

Market makers can assess trends in the securities market, their reliability and expected yield, later informing smaller institutions about them. The best deals are put together and the deal is made.

Market makers play a huge role in a situation where the market is dominated by sellers or buyers. This happens during the release of positive news, or, conversely, during a panic reset due to something negative.

In such situations, the market maker is obliged to conclude transactions for the purchase (sale) of the asset, even though it is unprofitable for him. As  its main goal is not to make money, but to neutralize bid and ask, as well as to maintain the market liquidity. Thus when the price rises, the Market Maker sells, and when the price falls, the Market Maker buys.
Terms from the same category

Find Any Data on Any Bond in Just One Click

Full data on over 500,000 bonds and stocks worldwide

Powerful bond screener

Ratings from the top 3 global ratings agencies, plus over 70 local ones

Over 300 pricing sources from the OTC market and world stock exchanges

User-friendly and intuitive across multiple platforms

Get access

— Are you looking for the complete & verified bond data?

— We have everything you need:

full data on over 700 000 bonds, stocks & ETFs; powerful bond screener; over 350 pricing sources among stock exchanges & OTC market; ratings & financial reports; user-friendly interface; available anywhere via Website, Excel Add-in and Mobile app.



You will have detailed descriptive & pricing data for 650K bonds, 76K stocks, 8K ETFs
Get full access to the platform from any device & via Cbonds app
Enhance your portfolio management with Cbonds Excel Add-in
Build yield maps, make chart comparison within a click
Don't wait any longer — start using Cbonds today! Register
Registration is required to get access.