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How do market makers earn money?

Market makers earn money from the difference between the share's bid price and the Ask price. For instance, if the security is trading at Rs 20 or the offer price is Rs 20 and the bid price is Rs 22, then the margin of Rs 2/share will be the profit of market makers. They will purchase securities at a bidding price and sell them to buyers at a slightly higher price to get a profit margin.

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