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If that were true the market makers would be losing money buying the order flow, and this conversation would be moot. But instead these firms are quite profitab
by jdsully 5y ago
If that were true the market makers would be losing money buying the order flow, and this conversation would be moot. But instead these firms are quite profitable doing this. It’s a zero sum game so the money must come from somewhere.
- gruez 5y ago>If that were true the market makers would be losing money buying the order flow No, because as other comments have mentioned, retail orders are generally "non-toxic" and "uninformed", which allows market makers to quote tighter spreads while still maintaining profit.