Adverse Selection Microstructure vs Market Maker

Quick comparison to help you distinguish these two crypto terms.

Adverse Selection Microstructure
intermediate
market_structure

Market microstructure phenomenon where one trading party possesses better information than the other, creating asymmetric advantages that increase execution costs for uninformed traders.

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Market Maker
intermediate
market_structure

A market maker is a participant who continuously posts both buy and sell orders on an exchange, providing liquidity so any trader can execute immediately.

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