Market maker has a particular significance in relation to IG's platform. Here, we define market maker in general investing and explain what it means to you when trading with IG.
A market maker is an individual or institution that buys and sells large amounts of a particular asset in order to facilitate liquidity.
Market makers tend to be in control of a certain amount of the asset (or assets) that they deal in. By displaying a buy and sell quote and executing trades at that price extremely quickly, market makers represent a straightforward way to place trades. They are most common in shares trading, but can also act in other markets.
We use market makers for the pricing of some illiquid shares.
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