market maker

Definition of "market maker"
  1. A professional securities trader who maintains market stability by buying when sell orders are high and selling when buy orders are high, thereby utilizing their securities inventory as a buffer against temporary order fluctuations while making a profit from the price differences
How to use "market maker" in a sentence
  1. The market maker stepped in to buy a surplus of stocks when panic selling took over.
  2. For a small new company, having a market maker is important to ensure that their shares trade smoothly.
  3. In order to promote liquidity for the newly launched futures contract, the futures exchange paid a trader to act as a market maker.

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