Many people who are new to the crypto financial market or the financial market in general have heard and read a lot of people mentioning #MM but do not understand what MM is? So, let's explain in detail what MM is:
Market Maker (abbreviated as MM) is an individual or organization with large capital and experience, specializing in providing trading services and creating liquidity for the financial market. They do this by buying and selling assets, such as tokens, stocks, bonds, foreign exchange and commodities, at pre-set prices. This makes the market more liquid, meaning assets can be bought and sold more easily.
Market Makers typically maintain bid and ask prices at small spreads and provide liquidity to the market, as this attracts more buyers and sellers and leads to higher trading volumes. Higher trading volume increases the market maker's profits.
MMs play an important role in maintaining the flexibility and liquidity of an asset class, ensuring that markets can operate smoothly and efficiently. Market Makers typically get paid by charging commissions on the trades they make. They can also make money by spreading the difference between their buying and selling prices.
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