GameStop, Payments for Order Flow, and High Frequency Trading
GameStop, Payments for Order Flow, and High Frequency Trading SHARE Speculative activity surrounding the stock of the video game retailer GameStop has been in the news. The Washington Post discussed how the trading platform Robinhood, used by many small investors purchasing GameStop stock, funds itself through payments for order flow rather than fees paid by those who buy or sell the stocks. That is, the orders submitted by the ordinary retail investors that make up Robinhood’s customer base are directed to Citadel, a maker of a trading market for stocks, for execution in return for...
Source: cato.org