By taking the opposite side of a trade when there are no other orders, the dealer prevents the price from ________ from the price at which a recent trade was consummated.

Question

Quizplus · Accepted Answer

When there are no other orders, taking the opposite side of a trade to prevent the price from materially diverging from the price at which a recent trade was consummated is known as "maintaining the market." Maintaining the market prevents extreme price movements due to lack of liquidity or market activity.

By Taking the Opposite Side of a Trade When There