by InVideo_
Robinhood made $90m in Q1 2020 off non-marketable limit orders. More-so than any one single entity while being a much smaller company in terms of overall flow.
Which has a very intriguing image near the bottom: imgur.com/rwwl4lq (Robinhood is getting insane rebates on S&P500 transactions)
Article: Robinhood’s Trailing Stop Orders: Extreme Profitability, By Design
Previous article with moar data
Here is Robinhood’s own support article on their stock routing and execution quality. In which it says:
Is Robinhood incentivized to send orders to one market maker over another?
No. To ensure we have a fair system, we don’t take rebates into consideration when we choose which market maker will execute your orders. Also, all market makers with whom we have relationships pay us rebates at the same rate.
Doesn’t seem true but I could be wrong.
As well as their associated SEC Rule 606 data
tldr; your trailing stops don’t trigger as fast as you’d like them to because they make a shit load off the bid-ask spread. As well as seemingly getting a sweetheart deal on S&P500 spread. Market liquidity isn’t your friend when you’re commission free trading.
Disclaimer: This is a guest post and it doesn’t necessarily represent the views of IWB.
- Ellen Brown: The Looming Quadrillion Dollar Derivatives Tsunami
- Janet Yellen Just Poured Lighter Fluid On Every Small Bank In America
- The Great Financial Collapse of 2023. Comparison of Bear Stearns’ collapse in March 2008 and Credit Suisse in March 2023.
- Ron DeSantis unveils legislation to BAN Central Bank Digital Currency in Florida, protecting citizens from a grave threat to civil liberties…
- Never in history have we had all three issues happening at once…
- Clearwater Mayor abruptly resigns… Council members left in stunned silence
- Sperm has been almost entirely replaced by spike proteins
- People are crashing…
- Armstrong: WOKE Culture is Destroying the Economy & our Nation
- 2023: A Year When Everything Is Suddenly Breaking Loose All At Once
Views: 14