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market maker

   Also found in: Financial, Acronyms, Wikipedia 0.03 sec.
market maker
n
(Economics, Accounting & Finance / Stock Exchange) a dealer in securities on the London Stock Exchange who buys and sells as a principal and since 1986 can also deal with the public as a broker


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It is the extra money you pay to market makers for selling the options to you.
Any option market maker that is short the MO March 14 calls is long stock against the calls as a hedge.
Nevertheless, the market participants are free to choose any market maker to trade with, even though the market maker may not post the best quotes.
 
 
 
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