Market maker
MarketsDefinition
A firm that continuously quotes both bid and ask prices for a security, providing liquidity in exchange for the bid-ask spread. Modern equity market making is dominated by HFT firms (Citadel Securities, Virtu, Jane Street).
Citadel Securities alone handles ~30% of US retail equity volume via "payment for order flow" arrangements with brokers like Robinhood. Profit comes from capturing tiny price differences across thousands of trades per second.
Citadel Securities alone handles ~30% of US retail equity volume via "payment for order flow" arrangements with brokers like Robinhood. Profit comes from capturing tiny price differences across thousands of trades per second.