3 ms·
> I think it’s bad (it’s weird/unfair) How is it bad or unfair? Everybody wins: you get a better price, the market maker does a trade they're happy with, and y
by badfrog 6y ago
> I think it’s bad (it’s weird/unfair)
How is it bad or unfair? Everybody wins: you get a better price, the market maker does a trade they're happy with, and your broker gets a little bit of money.
- sesuximo 6y agoI think it’s a little unfair compared to letting people put their orders on exchanges directly
- badfrog 6y agoYou are guaranteed a price that is equal or better than what you'd get on the exchange. Why would you want to bypass that?
- sesuximo 6y agoWell “the price” might be totally different if there were no off-exchange orders. But I’m sort of being a devil’s advocate... I agree with your argument in practice since I don’t expect to see such open exchanges anytime soon
- badfrog 6y ago> Well “the price” might be totally different if there were no off-exchange orders. I'm not sure what that means, but there's no scenario in which you'd get a worse price. That would be illegal under the Reg NMS order protection rule. https://www.investopedia.com/terms/o/order-protection-rule.asp https://www.investopedia.com/terms/o/order-protection-rule.a...
- sesuximo 6y agoYou won’t get a worse price than what the exchange says is the price, but that price Is a moving target; if all competitors could see all orders, the price would move. Idk if it makes a difference on average but it is a difference