Source: https://mochatrade.com/learn/glossary/market-maker

# Market maker
URL: https://mochatrade.com/learn/glossary/market-maker
Last modified: 2026-10-17

A market maker quotes a price to buy and a slightly higher price to sell all day and earns the spread. Since [US prices moved to one-cent steps in 2001](https://mochatrade.com/learn/us-market-structure/us-stock-market-explained) they are computers, they hedge every fill so they hold no view, and they [pull quotes when they cannot predict the next minute](https://mochatrade.com/learn/us-market-structure/who-moves-us-stocks). Where options pile up at one strike, [their hedging can pin the stock](https://mochatrade.com/blog/mocha-markets-weekly-ccd).

## Related terms

- Hedging: https://mochatrade.com/learn/glossary/hedging
- Bid-ask spread: https://mochatrade.com/learn/glossary/bid-ask-spread
- Liquidity: https://mochatrade.com/learn/glossary/liquidity
- Long and short position: https://mochatrade.com/learn/glossary/long-and-short-position
- Short selling: https://mochatrade.com/learn/glossary/short-selling
- US ETF: https://mochatrade.com/learn/glossary/us-etf

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.