As the topic suggests…what is the difference between a market maker and a market mover?
A market maker provides liquidity by standing ready to buy and sell. The market maker primarily attempts to profit by capturing the spread between where they buy (at the bid) and sell (at the offer).
A market mover is one of two things:
A trader or institution which trades in size sufficient enough size to push the market bid/offer around.
A person who has the credibility or position to give weight to their words so the markets listen to them and react to their comments.
market makers and market movers…
can’t live with 'em, can’t live without 'em.
Thx for the replies. Rhody your input is as always appreciated! Would you have an example of a market mover?
Soros definitely was once a huge market mover, back when he was still active in the markets.
Current day market movers include Bill Gross of PIMCO when it comes to interest rates and the fixed income markets and Kramer for the stock market. I can’t think of a specific trader/fund manager for forex that has a lot of punch right now.
These guys, though, pale in comparisson to government and regulatory figures like the Fed Chief, Treasury Secretary, head of the ECB and the BOE, plus the BOJ. Really any person with responsibility for monetary policy and/or interest rate decisions for one of the major industrialized economies. And of course heads of state.