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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

Inside Information

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

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Volume

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

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Buy-In

Understand the meaning and definition of Buy-In in the context of stock market, trading, and investments.

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Capital Stock

Understand the meaning and definition of Capital Stock in the context of stock market, trading, and investments.

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Standing Committees

Understand the meaning and definition of Standing Committees in the context of stock market, trading, and investments.

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Option Class

Understand the meaning and definition of Option Class in the context of stock market, trading, and investments.

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