Payment for Order Flow

Payment for Order Flow
As a way to attract orders from brokers, some exchanges or market-makers will pay your broker's firm for routing your order to them - perhaps a penny or more per share. This is called "payment for order flow.

Payment For Order Flow
When you execute a trade, your broker may direct your order to a third party and get paid for it in the form of a kickback.

Payment for Order Flow
A market maker's complimentary payment to a broker in exchange for stock trade direction.
Payout Ratio ...

payment for order flow The practice by the securities industry of providing a monetary incentive for... payment in kind A payment made in the form of goods and services, as opposed to cash.

Order Routing and Payment for Order Flow
Day, GTC, Limit, and Stop-Loss Orders
Pink Sheet Stocks
Price Improvement
Process Date
Round Lots of Shares
Security Identification Systems
Shorting Stocks
Shorting Against the Box
Size of the Market ...

See also: Broker, Market, Stock, Exchange, Orders