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Market Maker Spread

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Dictionary Says

Definition of 'Market Maker Spread'

The difference between the price at which a market maker is willing to buy a security and the price at which the firm is willing to sell it (the difference between the bid and ask for a given security). Because each market maker can either buy or sell a stock at any given time, the spread represents the market maker's profit on each trade.
Investopedia Says

Investopedia explains 'Market Maker Spread'

Market makers are limited in the size of spread they can offer. The bid/ask spread has a maximum size to prevent cheating and manipulation of stock prices.

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