Definition of Market Maker
A broker or institution that provides liquidity by continuously quoting both buy and sell prices. Market makers effectively take the opposite side of your trade and profit from the spread.
At a glance
Term
Market Maker
URL slug
market-maker
Category
General
Short answer
A broker or institution that provides liquidity by continuously quoting both buy and sell prices.
Deep dives
Full A–Z glossary
Example
Apply the definition: restate “Market Maker” in one sentence tied to your next trade (symbol, direction, size, stop). If you cannot, re-read the definition above.
Common mistake
Common mistake: using “Market Maker” as loose slang while your broker/platform specification defines it more narrowly.
Professional tip
Tip: bookmark this “Market Maker” page and reopen it when reading broker specs so definitions stay consistent.
Practice tools:
Related terms
FAQ
A broker or institution that provides liquidity by continuously quoting both buy and sell prices.
Knowing the precise definition of “Market Maker” prevents platform and broker-spec mistakes—a common source of size and cost errors.
Common mistake: using “Market Maker” as loose slang while your broker/platform specification defines it more narrowly.