Market Maker

A market maker, sometimes referred to as a liquidity provider, is an individual or organization that participates in the buying and selling of substantial volumes of assets to ensure the liquidity of the market. While not always crucial in highly active trading environments, market makers are frequently employed in both stock and cryptocurrency exchanges to uphold liquid markets. Through their activities, market makers establish a market by facilitating trading liquidity, reducing slippage, and improving the speed of trade executions, particularly for larger orders. They earn income by profiting from a portion of the bid-ask spread for the assets they provide liquidity to.