What is a market maker? How forex and crypto markets stay liquid
By SendPay Business · · 2 min read
A market maker is a firm that stands ready to buy and sell an asset at any time, quoting both a buy price and a sell price. By always being willing to trade, market makers keep markets liquid so other people can buy or sell without waiting.
How a market maker works
- It quotes a bid price, at which it will buy, and an ask price, at which it will sell.
- Traders buy from it at the ask or sell to it at the bid.
- It keeps the gap between the two, called the spread.
- It manages the risk of the positions it builds up, often by hedging.
In forex and crypto
In forex, large banks and trading firms make markets in currency pairs. On crypto exchanges, specialist firms place buy and sell orders on the order book, and exchanges sometimes pay them rebates, which is where maker and taker fees come from.
Why it matters to traders
More market makers usually means tighter spreads and less slippage on big trades. In thin markets with few market makers, spreads widen and prices can jump.
Where SendPay fits
SendPay is not a market maker. A SendPay platform lets your customers exchange GBP, EUR and USD and buy, sell and hold crypto, with the exchange and trading fees set by you.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
What does the spread cost me?
Turn bid and ask prices into the spread and its cost.
Forex spread calculator →Can I offer currency exchange in my own app?
Yes, on a branded platform where you set the fee.
See platforms →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.