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0 pointsgbrits7y ago0 comments

So the market maker who pays for order flow data takes the spread. But how are they able to trade with the buyer at $100.01 when there are limit asks on the book already at that price? Seems they need to cut the line?

0 comments

vostok7y ago

That's part of thr reason that they pay for the flow. They're able to sell at $100.01 off exchange even if there was someone else who was willing to sell at $100.01 on the exchange first.

This also why I think payment for order flow is bad even if the first order effects are not bad for Robinhood customers under reasonable assumptions.

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0 pointsgbrits7y ago0 comments

0 comments

vostok7y ago

That's part of thr reason that they pay for the flow. They're able to sell at $100.01 off exchange even if there was someone else who was willing to sell at $100.01 on the exchange first.

This also why I think payment for order flow is bad even if the first order effects are not bad for Robinhood customers under reasonable assumptions.

j / k navigate · click thread line to collapse