Stocks

Payment for Order Flow

A broker's referral fee, also known as a payment received by a market maker, is a form of compensation for directing a stock trade to that particular market maker. This incentive serves as a thank you for the broker's role in facilitating the trade. It is important for investors to understand the various forms of compensation involved in the stock market, as it can impact their overall investment strategy.

Related terms

Filing Statement

Understand the meaning and definition of Filing Statement in the context of stock market, trading, and investments.

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Inside Information

Understand the meaning and definition of Inside Information in the context of stock market, trading, and investments.

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Special Trading Session

Understand the meaning and definition of Special Trading Session in the context of stock market, trading, and investments.

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European-Style Option

Understand the meaning and definition of European-Style Option in the context of stock market, trading, and investments.

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