Citadel Securities forks out $2.6 billion annually for payment for order flow and most of it’s on op

[taowave]

I find the exact opposite of what you say one shoud not do regarding day trading/scalping options..

There is a way to profit from PFOF.

Another proof that RobinHood is a bucket shop market-making broker in stock/options, very much the same as any of those bucket shop market-making broker in Forex. When you trade with RobinHood, you are basically trading against the broker.




So all of the market makers paid approx. $7.8 billion for orderflow and basically trading against us.




Another reason why you do not make any money daytrading or scalping in options and another reason why as soon as your order is filled, the market moves against you. I notice that all the time trading with TDA. It's always best to swing trade options and NEVER ever do a market order in options. The slippage is horrible because you don't have access to the central exchange at all.

 

[CactusWren]

 

[TheDawn]

“While banning PFOF might sound like a simple path forward, we caution that doing so is not simple and risks encouraging new and less transparent and inefficient alternatives to be created,” Virtu said in its statement.

Oh really what less transparent and inefficient alternatives? Like central exchanges and open order books? Thanks for the caution.

 

[cruisecontrol]

 

[murray t turtle]

By Annabel Smith
Citadel Securities takes the top spot when it comes to payment for order flow (PFOF), forking out $2.6 billion in 2020 and 2021 according to 606 reports gathered by the US’ Securities and Exchanges Commission (SEC).

The market maker due to its dominant market share accounted for around a third of the total market spend on PFOF in 2020 and 2021, followed by Susquehanna (G1X global execution brokers), which spent a $1.5 billion and Virtu which spent $654 million in the same period.

Equities makes up a small portion of PFOF, accounting for around $877.5 million of Citadel Securities’ spend, with $1.7 billion of its $2.6 billion spent on options flow.
Around 40% of institutional equity traders in the US have pegged PFOF and regulatory changes surrounding it as the most crucial developing market structure trends for the year to come, according to research by Coalition Greenwich in February.

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I WOULD not assume options + options bid\ ask are the worst deal just because Citadel Secutities + most of market makers make the most money , by far\on those.............................................................................................................LOL
But my own P& L on them , IBKR exit on that market on them +decay may make a difference also/LOL
HOOD massive PFOF + SEC fine may have hurt thier stock price.
Citadel Group actually urged the SEC to ban PFOF in 2004, but its been so long from that comment, maybe the SEC should leave well enough alone.......................................[ FEB 16\2021 Better Markets 501[c] [3] article