What is a market maker?
Anonymous
A trader/invest firm that trades on the bid ask spread with the goal of reducing volatility in the market whilst improving liquidity. They make money buy putting orders to market and hedging the risk using options. Ie if they put in an ask order and buy a call option, if the price rises and they sell for less, they can buy back the stock for a theoretically lower price and sell again reducing the chance of losses.
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