Market Maker definition: Copy, customize, and use instantly
Introduction
The term "Market Maker" refers to a party, typically a financial institution or individual, responsible for providing liquidity in a financial market by quoting both buy and sell prices for assets. Market makers play a crucial role in ensuring smooth market operations by facilitating trades and reducing volatility. They may also be involved in the stabilization of asset prices.
Below are various examples of how "Market Maker" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Market Maker" as a liquidity provider
This definition ties "Market Maker" to the role of ensuring liquidity in a market.
"Market Maker" means a party that provides liquidity in a market by continuously quoting both buy and sell prices for a specific security or asset, thereby facilitating market transactions.
Definition of "Market Maker" as a financial intermediary
This definition connects "Market Maker" to its role as an intermediary in financial transactions.
"Market Maker" refers to a financial institution or individual that acts as an intermediary between buyers and sellers in a financial market, offering buy and sell prices to ensure market fluidity.
Definition of "Market Maker" as a risk-taking entity
This definition links "Market Maker" to a party willing to assume risks in the market.
"Market Maker" means a party that accepts the risk of holding assets by continuously offering both buy and sell prices, with the intention of profiting from price fluctuations.
Definition of "Market Maker" as a stabilizing agent
This definition applies "Market Maker" to a party helping to stabilize asset prices.
"Market Maker" refers to an entity responsible for stabilizing asset prices by maintaining orderly markets through continuous quoting of prices, even in times of market volatility.
Definition of "Market Maker" as an institutional entity
This definition ties "Market Maker" to a large institutional entity.
"Market Maker" means an institutional entity that facilitates market liquidity by providing consistent bid-ask spreads for securities, commodities, or currencies.
Definition of "Market Maker" as a facilitator of trades
This definition connects "Market Maker" to the facilitation of transactions in the market.
"Market Maker" refers to a party that facilitates trades by offering quotes on both buy and sell sides, ensuring that market participants can execute transactions without significant price slippage.
Definition of "Market Maker" as a price quote provider
This definition links "Market Maker" to the provision of price quotes in a market.
"Market Maker" means an entity that continuously provides bid and ask prices for a security, facilitating the execution of transactions by ensuring market participants can transact at competitive prices.
Definition of "Market Maker" as a market participant
This definition ties "Market Maker" to its role as an active participant in market activities.
"Market Maker" refers to an active market participant who is obligated to quote both buy and sell prices for a specific security, ensuring there is always liquidity available for that asset.
Definition of "Market Maker" as a price stability tool
This definition connects "Market Maker" to its role in ensuring price stability.
"Market Maker" means an entity that plays a crucial role in maintaining price stability by continuously providing prices for assets, even in thinly traded or volatile markets.
Definition of "Market Maker" as a regulatory entity
This definition links "Market Maker" to its role in meeting regulatory requirements.
"Market Maker" refers to an entity that is registered and regulated by market authorities to provide liquidity by continuously quoting prices in accordance with market regulations.
Definition of "Market Maker" as a participant in market creation
This definition ties "Market Maker" to its role in the creation of a market for assets.
"Market Maker" means an entity that helps create a market for specific securities or financial instruments by providing continuous price quotations for buying and selling.
Definition of "Market Maker" as an exchange participant
This definition connects "Market Maker" to an exchange platform.
"Market Maker" refers to an exchange participant that quotes both buy and sell prices for an asset, ensuring that there is always a counterparty for market participants wishing to transact.
Definition of "Market Maker" as an asset holder
This definition links "Market Maker" to its role as an asset holder.
"Market Maker" means a party that holds an inventory of assets in order to facilitate trades by offering competitive buy and sell prices to market participants.
Definition of "Market Maker" as a counterparty to trades
This definition ties "Market Maker" to its role as a counterparty in transactions.
"Market Maker" refers to a counterparty that offers buy and sell prices for a security, providing liquidity and ensuring that participants can complete trades without significant delays.
Definition of "Market Maker" as a trader with obligations
This definition connects "Market Maker" to a party with specific market obligations.
"Market Maker" means a trader who is obligated to quote prices for both buying and selling assets, ensuring continuous market liquidity and fair pricing for all participants.
Definition of "Market Maker" as an entity with continuous quoting duties
This definition links "Market Maker" to its duty of continuous price quoting.
"Market Maker" refers to an entity that is required to quote both buy and sell prices for a particular asset at all times, thereby ensuring that the market remains active and liquid.
Definition of "Market Maker" as a provider of bid-ask spread
This definition ties "Market Maker" to its role in setting the bid-ask spread.
"Market Maker" means an entity that provides the bid-ask spread for a particular asset, allowing for the smooth execution of transactions by offering consistent pricing in both directions.
Definition of "Market Maker" as an investment vehicle
This definition connects "Market Maker" to an investment vehicle.
"Market Maker" refers to an investment vehicle or firm that provides liquidity by continuously quoting prices and engaging in buying and selling securities within a specific asset class.
Definition of "Market Maker" as a liquidity source
This definition links "Market Maker" to its role as a source of liquidity.
"Market Maker" means an entity that provides liquidity in a market by maintaining an inventory of assets and offering consistent pricing to facilitate trade execution.
Definition of "Market Maker" as an entity with market obligations
This definition ties "Market Maker" to specific obligations in the market.
"Market Maker" refers to an entity that is contractually obligated to provide continuous market quotes for a security, helping maintain market liquidity and efficiency.
Definition of "Market Maker" as a provider of quotes
This definition connects "Market Maker" to its role in quoting prices.
"Market Maker" means an entity that regularly provides buy and sell prices for a financial asset, ensuring that buyers and sellers can execute transactions without delay.
Definition of "Market Maker" as a stabilizing force
This definition links "Market Maker" to its role in stabilizing the market.
"Market Maker" refers to an entity that helps maintain stable market conditions by offering continuous buy and sell quotes, even during times of market uncertainty or volatility.
Definition of "Market Maker" as a party that quotes prices for securities
This definition ties "Market Maker" to its role in quoting security prices.
"Market Maker" means a party that provides buy and sell prices for specific securities or assets, ensuring a continuous market for trading in those instruments.
Definition of "Market Maker" as a participant in capital markets
This definition connects "Market Maker" to capital market participation.
"Market Maker" refers to a participant in capital markets who provides liquidity by quoting prices and facilitating trades in a wide range of financial instruments.
Definition of "Market Maker" as a participant in pricing mechanism
This definition links "Market Maker" to its role in the pricing mechanism.
"Market Maker" means an entity that participates in the market’s pricing mechanism by quoting bid and ask prices for assets, influencing the fair price discovery process.
Definition of "Market Maker" as a liquidity enhancer
This definition ties "Market Maker" to enhancing liquidity.
"Market Maker" refers to an entity that enhances market liquidity by continuously offering competitive prices to buyers and sellers of financial assets.
Definition of "Market Maker" as an intermediary in asset pricing
This definition connects "Market Maker" to asset pricing.
"Market Maker" means an intermediary that facilitates the pricing of assets by quoting both bid and ask prices, ensuring the smooth flow of transactions in the market.
Definition of "Market Maker" as a market price setter
This definition links "Market Maker" to its role in setting market prices.
"Market Maker" refers to an entity that sets the market price for a particular asset by consistently offering buy and sell prices for that asset in the open market.
Definition of "Market Maker" as a price stabilizer in volatile markets
This definition ties "Market Maker" to stabilizing prices in volatile conditions.
"Market Maker" means an entity that helps stabilize prices in volatile markets by providing consistent liquidity through the offering of buy and sell prices for assets.
Definition of "Market Maker" as a financial market facilitator
This definition connects "Market Maker" to its role as a facilitator.
"Market Maker" refers to a financial market facilitator who ensures market liquidity by providing consistent pricing and facilitating the execution of transactions.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.