A market maker always avoids the cost of the bid-ask spread.

Name: A market maker always avoids the cost of the bid-ask spread.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A market maker earns a profit by buying securities at the bid price and selling securities at the ask price, which creates the bid-ask spread. Therefore, a market maker does not avoid the cost of the bid-ask spread, as it is a fundamental part of their business model.

A Market Maker Always Avoids the Cost of the Bid-Ask