A market maker is a trader or firm that regularly places both buy and sell orders to provide liquidity to a market.

Understanding market maker helps you read prices and manage risk on any prediction market platform.

Example

A market maker might keep a bid at 48¢ and an ask at 52¢ open at all times to earn the spread.

Why it matters

Knowing how market maker works lets you compare markets and avoid costly mistakes when trading.

Practical tip

Before trading, check how market maker shows up on the specific platform you use, since interfaces and terminology can vary slightly between exchanges. Reviewing a few live markets is a quick way to see market maker in action before risking real funds.