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Market
Maker |
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A
market maker is responsible for providing a constant bid
and ask for the particular share
they are designated to. It is possible for them to use a computer
network to match buyers and sellers almost instantaneously. Market
makers must provide a quote within a pre-determined spread. The
difference between the bid and ask is determined by share volume,
price and liquidity amongst other things. |
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Market makers
are most commonly used at OTC
exchanges or by brokers who aren’t registered with an
exchange. |
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