Do you know who the market makers are?
To trade on the exchanges, any security or stock requires a market of sellers and buyers. So, what are their main role, and who the market makers are? They are traders, sort of speaking “creators of a market “, for securities by being ready to purchase or sell at any time. They benefit from the difference in the bid-ask spread and secure liquidity and depth to markets. Typically market makers are brokerage firms, large banks, or other financial institutions. Their job is to ensure that there is enough trading activity for traders to run smoothly. As we can see, they are a necessary link in the chain, and without them, there’d certainly be minimal liquidity. To put it another way, if there are not enough buyers in the market, investors who want to sell assets will be unable to do so, without market makers’ assist, because they enable keep the market running, which means they will be there to buy it. Correspondingly, if you want to purchas...