A market maker is an organization that constantly buys and sells currency at a known price on the over-the-counter market. The market maker acts as the opposite party to the private trader, i.e. if the trader buys the currency, the market maker sells it, and vice versa. Thus, it turns out that the market maker always trades against the trader. One of the main functions of the market maker is to ensure the liquidity of assets, and for performing this function, he receives a premium to the selling and buying prices. The difference between these prices is called the spread, and it is the spread that is the market maker's profit. The prices provided by the market maker are based solely on the mechanism of supply and demand.

The market maker has no incentive to predict the direction of price movement or direct the market in the direction he needs; all he does is instantly execute transactions at the specified price, which ensures continuous and smooth fluctuations in exchange rates.

In the absence of a trend, the market maker has many opportunities to trade against traders, protecting their own funds, but if the market is volatile, this is unlikely to be possible, so in this case the market maker will hedge with one or more first-tier brokers.

For private traders, the role of market makers is played by Forex brokers, who are also the opposite party in transactions (except when the trader has an ECN account).

If the transaction takes place between banks or a bank and a large financial institution, then the market maker will be such a bank or organization. Due to the high competition between banks and the fight of Forex brokers for clients, the spread becomes very low and does not greatly affect the result of the private trader's trade. Thus, market makers play a vital role in providing liquidity and at the same time maintaining competitive buying and selling prices.

Based on the above, we can confirm that the activity of market makers is necessary on the exchange to maintain bid/ask prices or trading volume. Empty markets are of no use to anyone. The activity of a market maker does not oblige him to move the price, manipulate the opinions of other market participants, but at the same time does not prohibit this. Unfortunately, exchanges do not provide other market participants with the opportunity to track transactions and orders made by market makers, and therefore part of the traded volume may not make economic sense (since it is made by market makers to maintain the visible trading volume).

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