Payment for order flow exposed as legalized front running, leaving US investors vulnerable

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Payment For Order Flow (PFOF) involves brokerage firms receiving compensation for directing customer orders to certain market makers or parties for execution. This practice is akin to front running, where someone executes trades based on advance knowledge of pending orders from other parties, effectively taking advantage of the market.

Front running is generally considered unethical and is prohibited in many countries because it undermines market fairness and integrity. It gives those with advance information an unfair advantage over other market participants.

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