Review:
Market Making
overall review score: 4.5
⭐⭐⭐⭐⭐
score is between 0 and 5
Market-making is the strategy of continuously quoting prices in financial markets to provide liquidity and facilitate trading.
Key Features
- Maintaining bid and ask prices
- Reducing price volatility
- Improving market efficiency
- Earning a spread on trades
Pros
- Increases liquidity in markets
- Helps ensure smooth functioning of financial markets
- Provides opportunities for profit through spreads
Cons
- Potential for conflicts of interest
- Requires significant capital and expertise