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smallmarketcap

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The idea that market makers are 'bad' is an oversimplificationIn reality, they're a key piece for markets to function—though, like any powerful player, they can abuse their power if there are no checks. 🧠 What is a market maker really? A market maker is an entity (bank, quantitative firm, or crypto) that: 👉 Is always willing to buy and sell an asset They do this by putting: Bid price Ask price Make money with the spread (the difference between both). 💧 Why are they IMPORTANT? (the part many don't understand) 1. They prevent 'dead' markets

The idea that market makers are 'bad' is an oversimplification

In reality, they're a key piece for markets to function—though, like any powerful player, they can abuse their power if there are no checks.
🧠 What is a market maker really?
A market maker is an entity (bank, quantitative firm, or crypto) that:
👉 Is always willing to buy and sell an asset
They do this by putting:
Bid price
Ask price
Make money with the spread (the difference between both).
💧 Why are they IMPORTANT? (the part many don't understand)
1. They prevent 'dead' markets
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