A dealer's position is not exposed to price risk because dealers set their own bid and offer quotes and can therefore ensure each trade is profitable.

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Dealers can still be exposed to price risk if they are unable to find a counterparty willing to trade at their quoted prices, or if market conditions change and their quotes become unprofitable. Additionally, dealers may also hold positions in securities or other assets that expose them to price risk.

A Dealer's Position Is Not Exposed to Price Risk Because