There are two sides to every coin, and likewise, there are two sides to every trade. The obvious two sides to each transaction are — a buyer and a seller. But in capital markets, there is also the party that provides liquidity — the one who is quoting a bid or ask; and the party that ‘hits’ the bid or ask. The party quoting and providing liquidity is referred to as a market maker, and the party “hitting” the bid/ask is the market taker.

Raghu Kumar

Raghu Kumar

Raghu loves trading, algorithms, and figuring out ways to beat the market. He enjoys workouts, naps, food, listening to Carnatic music, teaching his dogs (pug named Zenzi and Shih Tzu named Cactus) cool tricks, and spending time with family and friends.A list of his authored articles on NDTV Profit can be found at http://profit.ndtv.com/topic/rksv