Electronic Market Maker
A firm that uses algorithms to quote buy and sell prices continuously, earning the spread across huge…
In plain English
A firm that uses algorithms to quote buy and sell prices continuously, earning the spread across huge numbers of trades.
An electronic market maker is a market maker run by software. It streams two-way prices, absorbs orders and rebalances its risk in milliseconds.
Big banks and specialist trading firms both play this role. They supply much of the market's day-to-day liquidity, but they can pull back fast in a panic, which is why liquidity can vanish just when you need it.
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