Glossary Detail: Market Maker
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Backtesting Market Maker on High-Beta Names
Firms that provide liquidity by continuously quoting bid and ask prices. Their hedging activity is the mechanism behind GEX, pinning, and gamma squeezes.
Further Details:
Market makers are firms (Citadel Securities, Virtu, etc.) that provide liquidity to financial markets by continuously offering to buy (bid) and sell (ask) securities. They profit from the bid-ask spread and aim to maintain delta-neutral positions — meaning they don't take directional bets on the market.