Market Maker
Volume Price Analysis glossary · Validation Vs. Anomaly (Spread & Volume)
Definition
A firm designated to provide continuous bid and ask quotes in a security, ensuring liquidity.
Market Maker in plain English
A market maker is like the shop that's always open and always willing to both buy from you and sell to you, so you never get stuck holding something you can't trade. They constantly post two prices: what they'll pay you (the bid) and what they'll charge you (the ask), and they earn the small gap between them. Their whole job is to keep trading smooth — this smoothness is called 'liquidity,' meaning you can get in or out of a trade quickly without the price jumping around.
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