trding.io
Basics

Market maker — definition & meaning

A firm that quotes both buy and sell prices to provide liquidity.

A market maker continuously offers to buy and sell an instrument, earning the spread and providing liquidity so others can always trade.

Some brokers act as market makers, taking the other side of client trades; others pass orders to the wider market (ECN/STP). Neither model is automatically better, but it is worth knowing how your broker operates.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

Related terms

Liquidity
How easily an asset can be traded without moving its price.
Spread
The gap between the bid and ask price — a built-in cost of trading.
ECN broker
A broker that routes orders directly to a network of liquidity providers.
Bid
The highest price a buyer is currently willing to pay.
Long
Buying an asset expecting its price to rise so you can sell higher.
Short
Selling an asset you expect to fall, aiming to buy it back cheaper.

Keep going

Compare brokers
Neutral scores on regulation, fees and more
Real cost of trading
Rank brokers by real annual spread + commission
Broker regulation checker
Who regulates each broker, with official registers
Find your broker
A 60-second quiz matched to your profile
Position size calculator
Size a trade to a fixed risk
Learn to trade
Free, plain-English courses and guides