Industry WIKI

In finance, a contingent claim is a derivative whose future payoff depends on the value of another “underlying” asset, or more generally, that is dependent on the realization of some uncertain future event.

Payment for order flow (PFOF) is the compensation that a stockbroker receives from a market maker in exchange for the broker routing its clients' trades to that market maker. The market maker profits from the spread (the difference between purchase price and sale price) and rebates a portion of this profit to the routing broker as PFOF. Some of this benefit may be passed on to the retail