Market Maker or marker to market? – genxfxtrader
If you’re fascinated in this exciting world of trading, it is very important to know that there are operators and Broker that is called “Market Maker” and not necessarily the market is created for us in general (the so-called “Maker to Market”) in the development of this article will explain what is a Market Maker, and conclude in a more grounded so they can have clarity on this concept explanation.
The Market Maker is a Broker-dealer, just as there are dealer in drugs, in politics and in all areas of things in the financial world also exists that figure, the idea of the Market Maker is to ensure liquidity and stabilize prices currencies, equities, fixed income instruments and all financial instruments in general. This organization or individual listed on both the supply and demand the price of the asset and the condition does a being that if you are in bad dangerous hands, because it is noteworthy that the purpose of the Market Maker is to ensure liquidity in the market, say that investments move cash flows for all beings, it is understood that if an asset greatly increases its value, makes it less liquid and thus the investor has no purchasing power to buy and the holder of the asset does not generate money trying to sell their active, but it is understood that it is dangerous, because if used for personal purposes, serve to try to profit illegally, and is likely to succeed, but unscrupulously, can destabilize the market.
As the only conclusion, it is important to emphasize that the market is impossible for an investor just beat him, that the market and we are all between ignorance and ambition can give unfavorable situations who are Market Maker have important work to do right.
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