MasterFeeds: The Inside Story Of #Robinhood’s Billionaire Founders, Option Kid Cowboys And The Wall Street Sharks That Feed On Them

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Aug 25, 2020

The Inside Story Of #Robinhood’s Billionaire Founders, Option Kid Cowboys And The Wall Street Sharks That Feed On Them

Selling Order Flow is how they make money. 

In October 2019, Robinhood gleefully announced to its customers, "Options Stop Limit Orders Are Here," a nifty feature which essentially puts trading on autopilot. 

"That [stop limit] order is immediately sold to a high-speed trader who now knows where your intention is, where you would sell," says one former high-speed trader. "It's like you're writing a secret on a piece of paper and handing it to your broker, who sells it to someone who has an interest to trade against you." 

https://www.forbes.com/sites/jeffkauflin/2020/08/19/the-inside-story-of-robinhoods-billionaire-founders-option-kid-cowboys-and-the-wall-street-sharks-that-feed-on-them/

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