https://www.proz.com/kudoz/dutch-to-english/bus-financial/165587-marktvorming.html

marktvorming

English translation: market making

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
Dutch term or phrase:marktvorming
English translation:market making
Entered by: jarry (X)

17:54 Mar 16, 2002
Dutch to English translations [PRO]
Bus/Financial
Dutch term or phrase: marktvorming
vlak nadat een nieuw aandeel op de beurs is genoteerd
Titia Dijkstra
Local time: 17:38
market making
Explanation:
The job done by market makers.

What is market making?

Market making means that a trader or a company puts both buy and sell orders into the market, and wait for people to trade with him on either sides. In every market, price is quoted with both a bid and an offer price, with the latter a little bit higher than the former. Ordinary traders and investors "take the market," buying at offer price and selling at bid price. However, market makers could sell at offer price and buy at bid price. For example, imagine that the last price of XYZ stock is 10.00 and a market maker puts a 9.90 buy order and a 10.10 sell order into the market simultaneously. If someone hits him by selling at his buying price of 9.90, he gets a long position. If he thinks that the price of XYZ stock would rise further, he would hold the position for a while and square it at a higher price. If he is neutral or even bearish, he may sell the stock right away. If the price in the next second is 9.92 Bid/ 9.95 Offer, he may make the market again by putting a sell order at 9.95 and wait for somebody to buy from him, or just sell at 9.92 to take the market. Market makers trade from market fluctuation to make money. They like volatile rather than one-sided markets. If the market keeps rising or falling, they will run into the problem of taking positions that are against most people. Market makers don't care much about the long-term trend, or fundamentals, but focus on the short periods of abnormal price movement. They trade hundreds or even thousands of round-turns every day, and accumulate small gains into big profits.



--------------------------------------------------
Note added at 2002-03-18 09:30:04 (GMT)
--------------------------------------------------

Chris, I\'m afraid I don\'t know the meaning of \"marktvorming\" in the context of \'fund providers\'. I agree with you, however, that in Dutch (not Belgian Dutch) the market making is mostly rendered as \"een markt onderhouden\". In the context provided by the asker, however, I thought \"marktvorming\" could not really refer to anything else.

--------------------------------------------------
Note added at 2002-03-19 09:01:59 (GMT)
--------------------------------------------------

In view of the additional information you provided, it sounds as if the Dutch word is simply a reference to market forces: \'the forces of supply and demand, which determine equilibrium quantities and prices in markets. Perhaps market mechanisim is an option as well.
Selected response from:

jarry (X)
South Africa
Local time: 17:38
Grading comment
Thank you for your extensive notes. I did simply use market formation though - the text had to go out before I posted the addition.
4 KudoZ points were awarded for this answer



Summary of answers provided
4 +2market making
jarry (X)


Discussion entries: 1





  

Answers


1 hr   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +2
market making


Explanation:
The job done by market makers.

What is market making?

Market making means that a trader or a company puts both buy and sell orders into the market, and wait for people to trade with him on either sides. In every market, price is quoted with both a bid and an offer price, with the latter a little bit higher than the former. Ordinary traders and investors "take the market," buying at offer price and selling at bid price. However, market makers could sell at offer price and buy at bid price. For example, imagine that the last price of XYZ stock is 10.00 and a market maker puts a 9.90 buy order and a 10.10 sell order into the market simultaneously. If someone hits him by selling at his buying price of 9.90, he gets a long position. If he thinks that the price of XYZ stock would rise further, he would hold the position for a while and square it at a higher price. If he is neutral or even bearish, he may sell the stock right away. If the price in the next second is 9.92 Bid/ 9.95 Offer, he may make the market again by putting a sell order at 9.95 and wait for somebody to buy from him, or just sell at 9.92 to take the market. Market makers trade from market fluctuation to make money. They like volatile rather than one-sided markets. If the market keeps rising or falling, they will run into the problem of taking positions that are against most people. Market makers don't care much about the long-term trend, or fundamentals, but focus on the short periods of abnormal price movement. They trade hundreds or even thousands of round-turns every day, and accumulate small gains into big profits.



--------------------------------------------------
Note added at 2002-03-18 09:30:04 (GMT)
--------------------------------------------------

Chris, I\'m afraid I don\'t know the meaning of \"marktvorming\" in the context of \'fund providers\'. I agree with you, however, that in Dutch (not Belgian Dutch) the market making is mostly rendered as \"een markt onderhouden\". In the context provided by the asker, however, I thought \"marktvorming\" could not really refer to anything else.

--------------------------------------------------
Note added at 2002-03-19 09:01:59 (GMT)
--------------------------------------------------

In view of the additional information you provided, it sounds as if the Dutch word is simply a reference to market forces: \'the forces of supply and demand, which determine equilibrium quantities and prices in markets. Perhaps market mechanisim is an option as well.

jarry (X)
South Africa
Local time: 17:38
Native speaker of: English
PRO pts in pair: 3855
Grading comment
Thank you for your extensive notes. I did simply use market formation though - the text had to go out before I posted the addition.

Peer comments on this answer (and responses from the answerer)
agree  Evert DELOOF-SYS: yes indeed - excellent
1 hr
  -> Thanks Evert, but I cannot claim the credit for this explanation; I found it on the Internet!

agree  Chris Hopley: Is marktvorming in this meaning an Anglicism? Most stuff I've translated on the subject talks about liquiditeit verschaffen, this being the job of the liquiditeitverschaffers or animateurs.
1 day 13 hrs
Login to enter a peer comment (or grade)



Login or register (free and only takes a few minutes) to participate in this question.

You will also have access to many other tools and opportunities designed for those who have language-related jobs (or are passionate about them). Participation is free and the site has a strict confidentiality policy.

KudoZ™ translation help

The KudoZ network provides a framework for translators and others to assist each other with translations or explanations of terms and short phrases.


See also: