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Order Flow
What does it mean?
The directing of orders by a brokerage to different parties to be executed.
In Other Words...
For example, to fill orders for securities trading on an exchange such as the NYSE a brokerage has a number of different options. They may choose to direct the order to a regional exchange or a third market maker to be filled.
Sometimes, regional exchanges and third market makers will pay the brokerage a fee for order flow. The fee is likely only a cent or two a share but can add up on large orders.
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Related Terms
Agent | Broker | Dealer | Limit Order | Market Order | Order | Third Market Maker
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A | B |
C | D |
E | F |
G | H |
I | J |
K | L |
M | N |
O | P |
Q | R |
S | T |
U | V |
W | X |
Y | Z
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