What is order flow trading?

Order flow trading is a type of trading strategy and form of analysis used by traders on the markets, other popular forms of market/trading analysis include technical analysis, sentiment analysis and fundamental analysis. Order flow trading is the process of analysing the flow of trades being placed by other traders on a specific market.

What is order flow analysis?

Traders can use Order Flow analysis to see the subsequent impact on the price of the market by these orders and therefore make predictions on the future price and direction of the market. Order flow trading is a type of short term trading strategy as it is used to enter the market accurately based on recent executed buy and sell orders.

What is payment for order flow?

One of the most lucrative—and controversial—options is a practice called payment for order flow. “Payment for order flow enables commission-free trading,” said Robinhood chief executive Vlad Tenev during Congressional testimony in February 2021 following the Gamestop debacle.