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.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.