payment for order flow

Definition

The securities industry practice of providing a monetary incentive for brokers to route their orders through a specific market maker. Some, but not all, brokers take payment for order flow.

Reproduction of all or part of this glossary and/or this page, in any format, without written consent is prohibited. If you have questions about this dictionary please feel free to contact us feedback\@\investorguide.com

Popular 'Brokerages' Terms

sell limit order
limit order
broker
investment bank
mark-to-market

account
purchase
buy limit order
underwriting
buying on margin

payment for order flow in the news

Enter your email address to get our free Term of the Day newsletter!

Tools

payment for order flow is ...

... part of the Brokerages subject.

Nearby Terms

payee
payer
paying agent
payment
payment date
payment for order flow
payment in kind
payment option ARM
payment shock
payment-in-kind security
payoff diagram