ARBITRAGE
Arbitrage is the simultaneous purchase and sale of an asset to profit from a difference in the price, exploiting price differences of identical or similar financial instruments on different markets or in different forms.
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Market makers are firms or individuals who provide liquidity to financial markets by continuously buying and selling assets. In trading, market makers help ensure smooth market operations by offering two-way quotes (bid and ask prices) for securities. They profit from the bid-ask spread, and their activity reduces the potential for large price fluctuations due to a lack of buyers or sellers. Traders rely on market makers for consistent execution and tighter spreads, particularly in less liquid markets or during off-hours.