Dealer
Market Microstructure glossary · Spread Economics & Liquidity Measurement
Definition
A trader who quotes firm bid and ask prices and stands ready to buy or sell from inventory.
Dealer in plain English
A dealer is a professional middleman who is always ready to trade with you on the spot — they'll buy the stock you want to sell, or sell you the stock you want to buy, right now. To pull this off they keep a stash of shares and cash (their "inventory"), and they earn money by buying a little cheaper (the bid) than they sell (the ask). Think of a shop that both buys used phones for $180 and sells them for $200, pocketing the gap as payment for always being open. The key word is "firm": their quoted prices are real promises they must honor, not loose estimates.
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