A market maker is a firm or individual that provides liquidity to a market by buying and selling financial instruments, such as stocks, options, or cryptocurrencies. Market makers act as both buyers and sellers, profiting from the bid-ask spread (the difference between the price at which they buy and sell).
The primary role of a market maker is to: Provide liquidity: Market makers ensure that there is always a buyer or seller available for a particular asset, making it easier for others to trade.
Stabilize prices: By buying and selling, market makers help to stabilize prices by reducing volatility and providing a counterparty to trades.
Quote prices: Market makers quote both bid and ask prices for a security, indicating the price at which they are willing to buy or sell.

Market makers operate in various financial markets, including stock exchanges, options markets, and cryptocurrency exchanges. They play a crucial role in maintaining market efficiency and facilitating trading activities.