Make A Market

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DEFINITION of 'Make A Market'

An action whereby a dealer stands by ready, willing and able to buy or sell a particular security at the quoted bid and ask price.

INVESTOPEDIA EXPLAINS 'Make A Market'

By being able to make a market allows the brokerage to fill customer orders out of the brokerage inventory, which is faster and easier than filling orders from other brokerages or investors.

RELATED TERMS
  1. Ask

    The price a seller is willing to accept for a security, also ...
  2. Exchange

    A marketplace in which securities, commodities, derivatives and ...
  3. Over-The-Counter - OTC

    A security traded in some context other than on a formal exchange ...
  4. Liquidity

    1. The degree to which an asset or security can be bought or ...
  5. Market Maker

    A broker-dealer firm that accepts the risk of holding a certain ...
  6. Bid

    1. An offer made by an investor, a trader or a dealer to buy ...
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