#MastertheMarket A market maker is a person or company that buys and sells large quantities of an asset to ensure that financial markets function well. They are also known as market makers.
Functions
- Ensure the liquidity of transactions in the secondary market
- Smooth price fluctuations
- Facilitate the buying and selling of Treasury securities
- Cooperate with the General Secretariat of the Treasury and International Financing
Operations
- Act as intermediaries between their clients' capital and trading desks
- Conduct transactions for buying and selling currencies, commodities, stocks, indices, among other instruments
- Establish the buying (bid) and selling (ask) prices for each financial asset
Where do they operate?
- They operate on blockchain platforms, using smart contracts to automate liquidity provision
- They participate in stock markets like the Stock Exchange, although they have a presence in many others
Objectives Maintain liquidity and stability in the market, Reduce price volatility, Maintain spread values.
Some information so we don't go crazy with market makers.