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. Exchange

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

    A security traded in some context other than on a formal exchange ...
  3. Ask

    The price a seller is willing to accept for a security, also ...
  4. Liquidity

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

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

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