Payment for order flow (PFOF)

Financial Markets History

The practice whereby brokers receive compensation from market makers for routing customer orders to them, enabling commission-free trading but raising conflicts of interest.

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Unit 13: arbitrage efficiency structure

Financial Markets History

Related Terms

Payment for order flow

Compensation paid by market makers to brokers for routing cu...

Market maker

A firm that provides liquidity by continuously offering to b...

High-frequency trading (HFT)

Algorithmic trading strategies that exploit speed advantages...