// TRADING TERMINOLOGY
What is Market Maker?
A firm or individual that provides liquidity to a market by being ready to buy and sell at all times.
In-Depth Explanation
Market makers "make the market" by quoting both a bid and an ask price. They profit from the spread between these prices and help ensure that traders can always execute their orders.
Practical Example
"Big banks like JP Morgan and Goldman Sachs act as major market makers in the Forex world."
Related Terms
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