Market Maker

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A market maker is a firm or individual that continuously quotes both a buy and sell price for a security, providing liquidity to the market in exchange for profiting from the bid-ask spread. Understanding how a single market maker operates — and how their positioning can influence short-term price action — helps active traders anticipate intraday moves in thinly traded stocks. Recognizing market maker patterns in Level 2 quotes is a core skill for traders who work with small-cap and OTC stocks.