Making a price

Updated: Aug 20, 2021

This is primarily a Stock Exchange term referring to the obligation of a market-maker, at one time a jobber, to quote a ‘double’ price applying to any security in which he deals. The market-maker does not know when asked by a broker, or other party permitted to trade with him. whether the inquirer wishes to buy or to sell, nor has he the right to know in advance. He therefore quotes a two-part price, being on the one hand the price at which he will buy and on the other hand the price at which he will sell. This is known as making a price and , j; the dealer is bound to deal in the price he m makes if at the time the other party so wishes.

Reference: The Penguin Business Dictionary, 3rd edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.