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I think they call it front running. It sounds similar to the stuff that high frequency traders can do and what market makers like citadel do when they buy the o
by raziel2701 6y ago
I think they call it front running. It sounds similar to the stuff that high frequency traders can do and what market makers like citadel do when they buy the order flow from brokers.
- gruez 6y agoPayment for order flow =/= front-running. https://www.bloomberg.com/opinion/articles/2021-02-05/robinhood-gamestop-saga-pressures-payment-for-order-flow https://www.bloomberg.com/opinion/articles/2021-02-05/robinh...
- justjonathan 6y agoI used to think that too, but this excellent piece from Matt Levine explains why that is not really the case: https://www.bloomberg.com/opinion/articles/2021-02-05/robinhood-gamestop-saga-pressures-payment-for-order-flow https://www.bloomberg.com/opinion/articles/2021-02-05/robinh... Retail traders benefit from this, and on Schwab, for example, they show you the dollars of price improvement the got you.