PFOF to be banned in Europe from 2026

[newwurldmn]

Retail order flow has a price because knowing that your counterparty is, almost by definition, the dumbest of the dumb money is worth a non-zero value. Imagine being an auto mechanic or an HVAC repairman and being able to choose only the most gullible low-IQ customers, paying a token amount for the privilege.

slightly different because the way these firms earn isn’t on screwing the retail, but by facilitating the flow.

 

[Drawdown Addict]

Unless one of their trades goes wrong, then they look for that juicy cloud of stops that provide liquidity and strength to the direction they tried to go in the first place.

And how do they know where that cloud of stops is at?

 

[ZBZB]

I Wish they let retail trade american ETF's... As that miifid regulation is ridiculous.

Yes to CFD, expensive European etf replicating USA etf, but no the real thing. To safeguard retail traders?

Sell ITM put to get long. Not sure if you can sell outright or have to sell ITM call to get flat.

 

[2rosy]

Unless one of their trades goes wrong, then they look for that juicy cloud of stops that provide liquidity and strength to the direction they tried to go in the first place.

And how do they know where that cloud of stops is at?

No, imagine a security that never moves during the day. market quote is 94.25/94.50 (eurodollar/sofr). market orders buy at 50 and sell at 25. I think everyone would pfof to be the sole MM. As long
as there is balanced buy to sell volume the MM is set else adjust market given inventory/volatility. And the more products and volume you're MM in the less savvy/clever you need to be. It's like being a toll booth.