Third Market Maker
A third-party firm willing to buy or sell stocks listed on exchanges at publicly quoted prices. Investopedia Says:
A broker is likely to direct an order to a third market maker for one of two reasons:
A) the broker is not a member of the exchange on which the stock is traded.
B) the third market maker entices the brokerage by paying (maybe a cent or two) per share for the trade. Related Terms:
Ask
Bid
Bid-Ask Spread
Broker-Dealer
Crossed Market
Ghosting
Market Maker
Market Maker Spread
Payment For Order Flow |