Market Makers || Payment for Order Flow Explained || Market Maker and Exchange Incentives

The Wall Street Journal published an article on 31st October named ‘How Robinhood Cashes in on the Options Boom’, this inspired me to investigate Payment for Order Flow further. According to Bloomberg the 11 largest U.S. retail brokerages collected $2.2 billion for selling customers options orders.

Payment for order flow (PFOF) is the compensation and benefit a brokerage firm receives for directing orders to different parties for trade execution (Investopedia, 2021). In this video we look at PFOF for Robinhood in Q3 2021 and the 4 largest brokerage firms in the world: TD Ameritrade, E Trade, Fidelity and Charles Schwab.

Wall Street Journal Article: https://www.wsj.com/articles/how-robinhood-cashes-in-on-the-options-boom-11635681600?mod=Searchresults_pos6&page=1

Breaking Down the Payment for Order Flow Debate: https://a16z.com/2021/02/17/payment-for-order-flow/

★ ★ QuantPy GitHub ★ ★
Collection of resources used on QuantPy YouTube channel. https://github.com/thequantpy

★ ★ Discord Community ★ ★
Join a small niche community of like-minded quants on discord. https://discord.com/invite/aY2Af4CxHP

★ ★ Support our Patreon Community ★ ★
Get access to Jupyter Notebooks that can run in the browser without downloading python.
https://www.patreon.com/quantpy

★ ★ ThetaData API ★ ★
ThetaData's API provides both realtime and historical options data for end-of-day, and intraday trades and quotes. Use coupon 'QPY1' to receive 20% off on your first month.
https://www.thetadata.net/

★ ★ Online Quant Tutorials ★ ★
WEBSITE: https://quantpy.com.au

★ ★ Contact Us ★ ★
EMAIL: [email protected]

Disclaimer: All ideas, opinions, recommendations and/or forecasts, expressed or implied in this content, are for informational and educational purposes only and should not be construed as financial product advice or an inducement or instruction to invest, trade, and/or speculate in the markets. Any action or refraining from action; investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied in this content, are committed at your own risk an consequence, financial or otherwise. As an affiliate of ThetaData, QuantPy Pty Ltd is compensated for any purchases made through the link provided in this description.

Тэги:

#pfof #payment_for_order_flow #what_is_payment_for_order_flow #payment_for_order_flow_explained #robinhood #fidelity #robinhood_controversey #robinhood_debate #robinhood_pfof #robinhood_payment_for_order_flow #stock_market #market_makers #market_maker_method #market_makers_explained #td_ameritrade #etrade #charles_schwab_vs_robinhood

Скачать видео