PFOF to be banned in Europe from 2026

Discussion in 'Trading' started by Drawdown Addict, Jul 22, 2024.

  1. newwurldmn

    newwurldmn

    slightly different because the way these firms earn isn’t on screwing the retail, but by facilitating the flow.
     
    #21     Jul 23, 2024
  2. 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?
     
    #22     Jul 23, 2024
  3. ZBZB

    ZBZB

    Sell ITM put to get long. Not sure if you can sell outright or have to sell ITM call to get flat.
     
    #23     Jul 23, 2024
  4. 2rosy

    2rosy

    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.
     
    #24     Jul 23, 2024