Market taker: Difference between revisions
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imported>Doug Williamson (Layout.) |
imported>Doug Williamson (Update.) |
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A 'market taker' is the customer of a market maker. | A 'market taker' is the customer of a market maker. | ||
The market taker suffers the worse side of the two-way prices quoted by the market maker. | |||
The market taker suffers the worse side of the two-way prices quoted by the market maker. | |||
This compensates the market maker for their risk, skill and expenses in making a market. | This compensates the market maker for their risk, skill and expenses in making a market. | ||
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==See also== | ==See also== | ||
*[[Market maker]] | *[[Market maker]] | ||
*[[Two way price]] | *[[Two-way price]] | ||
Revision as of 20:41, 10 August 2016
A 'market taker' is the customer of a market maker.
The market taker suffers the worse side of the two-way prices quoted by the market maker.
This compensates the market maker for their risk, skill and expenses in making a market.
