Market maker
Definition · Level 0 · Market basics
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A dealer that continuously quotes both a bid and an offer in a security, supplying liquidity, earning the spread and carrying inventory risk.
Example
Shows 20.10 × 20.12; buy 1,000 from you at 20.10 and it owns them until it can offload them.
Where Tradecraft teaches it
Level 0 · Market basics, in the lesson “Market plumbing & the trading day”: Who stands between you and the other side of your trade, how it settles, and when US stocks trade.
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