3 ms·
None of the market makers as far as I know consider retail orders to carry any information at all, which is precisely why they love then so much. They can fill
by physguy1123 8y ago
None of the market makers as far as I know consider retail orders to carry any information at all, which is precisely why they love then so much.
They can fill retail orders with no real concern about adverse selection (unlike on an exchange where an informed institution is trading against you) and make much more of the spread per trade. Hence why they pay for the orders and give price improvement
Source: work at a market maker