Market Maker
A firm or individual that continuously provides buy and sell quotes for a security, profiting from the bid-ask spread while ensuring market liquidity.
Explained Simply
Market makers are the counterparty to most retail trades. They quote both a bid (what they'll buy at) and an ask (what they'll sell at), pocketing the difference. In options, market makers are critical — they're the ones selling you options and then hedging their risk dynamically. Their hedging behavior (buying/selling stock to stay delta-neutral) is what creates gamma exposure effects and max pain gravity. Without market makers, spreads would be wide and execution would be poor.
How Tradewink Uses Market Maker
Understanding market maker positioning is central to our options analysis. The GEX (gamma exposure) loop estimates aggregate dealer positioning to predict whether market makers will amplify or dampen price moves. Max pain calculations estimate where market makers' hedging activity will push prices near expiration.
Related Terms
See Market Maker in action
Tradewink uses market maker as part of its AI trading signal pipeline. Start getting signals that use this concept to find real opportunities.