Market Maker

A person or firm that provides liquidity by making two-sided prices (bids and offers) in the market. In FOREX, transactions require large volumes to avoid large swings in prices, and this requires traders to trade with volumes of at least several hundreds of thousands of dollars to millions of dollars. Due to the fact that many traders cannot afford these sums, market makers step in to buy off assets and hold both buy and sell positions on the assets, which are then offered in smaller chunks to retail traders to buy in tens of thousands of dollars per transaction.

By |2018-09-04T14:40:58+00:00September 4th, 2018|0 Comments

About the Author:

SCM_2018

Leave A Comment