Description: The role of the market maker is to make a market in stocks and options. He or she provides a service to the public, buying their sales and selling their purchases. One might think of the market maker as a sort of banker -- he provides the public with what they want -- if they want loans (want to buy), he must give them one (and sell); or if the public wants to make a deposit (sell), he must take their money and buy. The market maker essentially facilitates the entire market process between the various groups in the global equities and options market (acting as a go-between for speculators and hedgers). The market maker is a speculator, but of a different sort. He makes his money on the spread between the bid and offer; yet simultaneously, to keep his customers coming back, he must buy at the best prices and sell at the best prices.

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