Market makers are dealers who buy and sell a large volume of stocks to ensure trades take place in order to increase the liquidity of the entire exchange. This increased liquidity benefits all parties involved by improving trading efficiency.
A specialist is a market maker who works on specific exchanges, such as the New York Stock Exchange. Although their functions are similar, specialists focus more on facilitating trades between brokers directly on an exchange's floor. A specialist is a type of market maker who frequently trades specific stocks.

Market makers are institutions or participants that ensure liquidity in financial markets by consistently quoting both buying and selling prices for assets like currencies, stocks, and commodities. In the forex market, they make it easier for traders to enter and exit positions quickly by providing continuous bid and ask quotes. Their main function is to keep the market active and reduce price gaps, especially during periods of low trading volume. They earn profits through the spread, which is the difference between buying and selling prices. By absorbing excess demand or supply, market makers also contribute to price stability. Although they may sometimes take the opposite side of trades, their role is crucial in maintaining efficient, liquid, and smoothly operating markets.