Resolved Question
How do market makers make money?
How do market makers make money? Do they have an insulated market between their customer or just act as a middleman on a wider FX market? How do they actually do their business? I'm very confused and curious.
over 3 years ago
Best Answer - Chosen by Asker
Market maker is either a bank or a brokerage company that stands ready every second of the trading day with a firm ask and bid price. They are the ones who quote both buy and sell prices in a financial instrument or commodity, hoping to make a profit on the bid spread or a turn. They make money by the spreads in each trade.
over 3 years ago
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