MARKET MAKER

Have you ever noticed that you purchase or sell your stock in online stock trades at the notice of moments? Whenever you ask your broker for the placement of order to your broker it is executed in the online stock trades market with in short time period. Did you ever ponder over it how it is possible? How your orders are soon executed in the online stock trades market?
Obviously it is not done on automatic basis. There are certain people available on the next end for execution. Like it you are interested for purchasing five hundred shares of any particular stock, you should search for the person who is willing to sell those share otherwise how can you purchase the stock it there is no seller available in the online stock trades market. It is not the option always available to you that you will find the person who is willing to purchase same share of same quantity at the same time. It is understood that it is not the case all the times but the market must go on and trading should always take place in the online stock trades. So here the concept of market maker comes on the scene.
A market maker can be a bank or any brokerage house that is always available in the trading hours of online stock trades ready to present ask and bid for any particular stock trades. In the presence of market maker you can sell your all the shares to these market makers even if they have not planned to purchase them. Their intension is just to make the online stock trades market strong for those stocks.
These market maker earn from their spread of online stock trades market. Spread of online stock trades is basically the difference between ask and bid. This difference is the total profit of the online stock trades market.