Exchange Currency

market maker spread

The difference between the price at which a market maker is willing to buy a security and the price at which he/she is willing to sell it. This difference is a source of profit, since the market maker will usually be buying and selling securities simultaneously.

Related information about market maker spread:
  1. Market Maker Spread Definition | Investopedia
    The difference between the price at which a market maker is willing to buy a security and the price at which the firm is willing to sell it (the difference between the ...
     
  2. The Effect of Risk on the Market Maker's Spread - JStor
    by Amir Barnea and Dennis E. Logue. The. Effect of Risk on th. Market Maker's Spmread. According to Walter Bagehot, the key to under- standing why trading ...
     
  3. What is a Market Maker and How do Market Makers Make Money
    Market makers are banks and brokerages which stand by all hours of the trading day with a firm ask and bid price on a stock. They are compensated by the ...
     
  4. Market Maker Spread Definition & Example | InvestingAnswers
    We explain the definition of Market Maker Spread, provide a clear example of how it works and explain why it's an important concept in business, finance ...
     
  5. What is market maker spread? - BusinessDictionary.com
    Definition of market maker spread: Difference between the bid and offer prices at which a market maker is committed to trade a security at any given time.
     
  6. What is market maker spread? - InvestorWords.com
    Definition of market maker spread: The difference between the price at which a market maker is willing to buy a security and the price at which he/she is willing to ...
     
  7. market maker - The Free Dictionary
    Market Loss Assistance Payment. market maker. Market Maker Authorized Trader · Market Maker Holding · Market Maker Spread · Market Maker Spreads ...
     
  8. Market makers - The Free Dictionary
    Market Maker Holding · Market Maker Spread · Market Maker Spreads. Market makers. Market making · Market making · Market Managed Multi-Service Internet ...