marknadstillverkare

Marknadstillverkare, or market makers, are financial entities that provide liquidity to a market by simultaneously posting buy and sell limit orders for a particular security. This ensures that there is always a price at which investors can buy or sell, thus facilitating smoother trading and reducing price volatility. Market makers profit from the bid-ask spread, which is the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept.

These entities play a crucial role in financial markets, particularly in over-the-counter (OTC) markets where trades are negotiated directly between parties rather than on a centralized exchange. By standing ready to buy or sell, market makers reduce the risk for other traders who might otherwise struggle to find a counterparty. This increased liquidity makes it easier and cheaper to trade, which can attract more investors to the market.

Market makers can be individuals, partnerships, or corporations, and they are typically found in various financial markets, including stock markets, bond markets, and foreign exchange markets. They are often regulated by financial authorities and are required to adhere to specific rules regarding their trading activities to maintain market integrity. Their presence is essential for the efficient functioning of modern financial systems, providing the necessary infrastructure for continuous trading.