Comment by rayiner
2 days ago
A “market maker” provides liquidity that allows trades to clear and keeps prices stable. They make money on the bid-ask spread. They don’t have leverage to raise or lower prices.
2 days ago
A “market maker” provides liquidity that allows trades to clear and keeps prices stable. They make money on the bid-ask spread. They don’t have leverage to raise or lower prices.
Another thing: Residential homes are never considered liquid assets. They don't need professional market makers.
Liquidity doesn’t make something more or less of an investment, it makes it easier to buy and sell. Liquidity in residential homes is a good thing. It means that it’s easier to sell your house and buy a new one if you need to move for whatever reason.
If we're still talking about big investors, they're buying, not selling. They're not "market makers" if they're one side only.