So hello, hello, hello, welcome to the afternoon session we're going to be putting a little bit of power in this particular hour. It is monday december 6th. We just kicked off power hour and i have a little bit to share with you a little bit of an update of what's going on uh, i was hanging out on the discord and then i was talking to my producer, editor merch guy, and he was like. Oh, like what are you gon na do this afternoon like what what kind of clips are you gon na give me i was like i don't know i'll talk a little bit about something technical, like v-wop and then maybe i'll talk a little bit about trading brokerages And payment for order flow he's like yeah yeah.

That sounds good and just my luck, it seems like payment for order flow and off exchange trading. Was it's currently a little bit of a little bit of a hot topic we have going on in the twitter sphere? I see recently public the brokerage had posted some commentary that we'll be going over um, very, very transparent about how life for them, as a brokerage, has done outside of payment for order flow uh. So that was a hot topic and then one of our favorite news correspondents, who i did invite to i just at least tune in, i feel bad for him. I feel like he want.

He should probably learn something uh, mr gasparino. I invited him in so maybe he could learn something i doubt he will and i started reading things and it very much legitimately started as like two tabs. I was like all right, i'll, just bang this out and then we'll watch eight videos, something like that and, as you can see, i was like. Oh i wan na talk about this.

I got ta find this article. I got ta find this article. I got ta find this fact. I need to find this peer-reviewed paper wait.

I need to find this filing. I need to find that, but then how does it connect to this? It just blew up. My tabs blew up and that's important. We, these are all important.

So if you want to know what's going on with any of this stuff, this is going to be a very full on cohesive discussion of payment for word of flow. It's not going to take up the whole hour, but uh there's a very good chance. It could take up a majority of the hour because at that important there's that much detail, i don't see one concise video out there, that's explaining all of it from taking someone who's never heard about it before of what the hell is it all the way to Like fully understanding of like how, in my humble opinion, it's actually detrimental to the entire wall street ecosystem, so we will be going into all of that. We're going to be talking about payment for order flow, the extreme nature of off exchange trading, but before we all like do that, i do want to give you kind of like a setup.

I don't want to completely forget that the market is actively trading right. Now amc is currently trading at 29.11, which means it's green. On the day by 0.3 percent uh, we have gme currently trading at 169, which means it's down by 1.9 percent prague's having a solid day, it's up by almost 19 trading at 280., the russell 2000 looking solid, it's up by two percent which for an indice, that's A considerable gain uh early this morning we were talking about those calls. I was like.

Oh that's, probably something i'd be interested in for sure that hit the like five eight ten fifteen percent return mark already. As like a quick day trade, i would have already locked that - and i didn't take the trade personally, but i just i'm referring back to the people who maybe heard about iwm kind of a similar situation with pinterest, iwm and pinterest. I found to both be interesting and they both already paid off uh spy. A green day is coming off of its intraday high, currently trading just south of 459, but up by one percent, the one that's like just kind of lagged.

The most today was the queues. The queues look very very similar to the spy, but it is still lagging. It's just you're, seeing the pivot of a fair amount of money out of the world of high growth and kind of into, i guess quote - unquote safer safer. I guess investments is probably the best way to really articulate it, but it is it.

Things are bouncing back. I think things are calming down now. Will this mark the end of all bearish momentum? I i don't know, that's why we have to pay attention day in and day out. I wish i were clairvoyant, i'm not clairvoyant at a certain point.

We have to be realistic of hey whatever. The next bar is no matter what time frame you are a lot of the time your guess is as good as mine. No one in this game is that good and if they were that good to be like this is exactly what's going to happen, they would not be public, they would not be public facing whatsoever. Please remember that if you, if you have the golden egg you're, not sharing that, if you have the golden goose you're, not sharing the eggs with the rest of the world, because before you know it, your edge would disappear into the ether and your trading methodology.

No longer would become a valid one. Let me give you a quick update of the number i'll do a quick reload here. Just so you know amc and gme short interest. I noticed with the newest update uh.

They must have like, and i don't know, fancy stuff going on in the background. It takes a little bit longer to load these days or maybe i'm just having a server error. They just rolled it out, i'm just trying to get used to the new platform um because hey one of these days, they're going to get rid of the old platform, but roughly as i'm still waiting for this to load amc's was around 17.5 ish percent and then Gamestops was around 11.5 the last time i checked like early in this afternoon when this loads i'll just circle back to it. So you know, what's going on there, we're seeing a little bit of bounce in the market.

So hopefully, hopefully we have a strong power hour. Um right now, crypto very, very flat: crypto bitcoin's been hanging out at 49, 000, almost afraid to get back above 50. ethereum's hanging out at 4 200.. We saw a little bit of bullishness in avalanche.

I like that and then doe just hanging out at 17. I was just talking with that. A little bit in the discord uh loop ring got a nice bounce off of 181. Up to 230., we saw some enthusiasm there, sheep still a little bit flat.

Matic had a very nice push off of around 170. All the way up to 213., so matic, looking good recently uh avalanche, also looking good, ethereum, okay and then bitcoin, definitely flat flat flat flat uh. Someone just asked where sorry charlie he's not gon na join. Obviously, not he uh would rather just stick with it and i don't think i'll also be saying the nicest things i guess before we get into this full-fledged discussion of payment for order flow and what you need to know some truth.

Some falsehoods the story of payment for order flow, if you guys could all help me out by getting a couple extra people in here. If everyone uh there's about 3 000 people in here on youtube, at least if you guys, could all annihilate that, like button, that is greatly helpful on twitch, oh we're on a hype train on twitch, what's going on on twitch over there also on rumble, if you Want to drop that royal rumble button all that stuff. It very very much helps me out with engagement. It's completely free.

It's honestly, all i ask for for the efforts that i put in here anything beyond that is uh. It's truly heartwarming, truly, truly heartwarming um. All right, thank you. Thank you.

You guys are already murdering that like button, let's talk about it and just so you know, uh later we will um hang on what is this? We will be clipping this just so we can have a place for it all right. All right all right, all right, so let me get ready. What's going on we're going to talk about payment for order flow? This is a very important subject, and it's one of these things where, for a while, there was a small group of people in the world who cared about it. It was very nerdy.

It was like phd level academics, those were the only people who discussed the interesties of pf payment for order flow and with the insanity of gamestop in january from then. Until now, it's very much become a center aspect of limelight, and you have people who feel staunchly on both sides of it, and i kind of want to at least in this video lay out some of the important things you need to know, because i'm seeing a Lot of falsehoods and red herrings and honestly straight up, intellectually dishonest arguments being spread as it relates to payment for order flow. So, throughout this i want to explain everything. That's going on so from the highest level.

Payment for order flow is a setup, an agreement between a brokerage and a market maker that, basically, all the orders from said brokerage will be sent to and executed by said market maker. It's also referred to as an internalizer, a retail wholesaler. These market makers have various names but think of the likes of citadel securities and virtue so once again, payment for order flow. The payment goes from the market maker to the broker, and in return for that, the broker is going to send the orders.

They don't send. It to whatever the best exchanges no way know-how, they end up sending it to the market maker and the market maker is playing the other side of that trade. So, let's get into some of the facts of this situation, so payment for order flow right here you can check this out on investopedia payment for order flow, is the compensation and benefit a brokerage firm receives for directing orders to different parties for trade execution. Once again, the most common ones in for these different parties think mainly citadel securities, but also vertu would be in there, and we know that.

There's a strong connection, particularly between the brokerage robinhood and then citadel securities, the market maker, and that all came out in the congressional hearing in february following the insanity of gamestop in late january. When it comes to this, this has become incredibly divisive. Incredibly divisive. There are people lining up a lot of people.

A lot of people are lining up against payment for order flow and there's a few people who are lining up in support of payment for order flow, but those few people happen to be very powerful. So, on one side of the battle you have people such as us as the apes, pointing out the extreme amount of off exchange trading, and how does it make sense? How does it help with price discovery? It's hurting liquidity, there's various issues and even on our side, we're getting the sec chairman says. Banning payment for word of flow is on the table, he's actively looking into it. Gary gensler has had various commentary that i will be showing you throughout this that he kind of like out of all these things going on.

He kind of seems to be on our side through my back room discussions with people who wouldn't be happy me sharing the conversation or their names or anything like that. They believe the year of 2022 is gon na, be fireworks in the sec, and it's gon na specifically relate to payment for already flow. There are many people who know far more about the market and politicians, and everything like that than i do, who are all saying. 2022 is gon na be the year that some serious regulation fights go down and i'll be happy to comment on it, the entire time so be on the lookout.

This is not a benign issue. This is an issue that leads to many screaming matches the transfer of millions, if not billions, of dollars. There's political angles, there's so much going on in this story, so you have the apes. You have a lot of people such as dave lauer, gary gensler, who are really looking into it and asking if it's the best thing for market structure and then the people who defend it.

So you have people like ken griffin here who own citadel citadel securities and yes, he has publicly said that payment for order flow is the cost for him, which is accurate, but he's not doing it altruistically. Obviously it's a business cost and he ends up making more money from it. So this is going to be, i guess, number one of something. That's intellectually dishonest, like when he's talking to his buddy sorkin he's like i'm fine with payment, forwarder flow going away.

Just tell me which side of the road to drive on it's a cost to me, no biggie, what like he's not doing it altruistically. Folks like this is wall street like that would be an insane argument, he's literally saying hey! No, i'm paying this like. If you pay a dollar but make two dollars like you're gon na keep doing that over and over again, so you have market makers who are supportive of it, such as doug sifu of virtu, ken griffin of citadel, and you also have people such as vlad tenniv. As you're about to find out like that is clearly his business model, robin hood needs payment for overflow because they're the one receiving the money, and then you also have the shills such as charles gasparino earlier today.

He tweeted payment for order flow is a good thing, say some smart people at mit, but don't tell former professor gary gensler commission savings and execution quality of retail trades, and then he posted some paper. Some paper that just got posted and yes mit, is a highly respected university, highly respected. They have many big brain people and he's pointing this out, and this is it's just a weird, it's a weird form of like fear-mongering, a weird form of childish. Like aha, i told you so so, like i said, you have few people who are supportive of payment or for order flow, some of them very popular and other of them are straight up.

Shills, it's not hard! You, google, this name. This is the person that people are really looking to potentially align themselves with whoops charlie gasparino is the latest to be busted for saying he was nominated for a pulitzer. So someone who blatantly lies this is circa 2012.. What we're now trusting him for journalistic integrity like come on, come on folks.

That is absolutely ridiculous. A person who still actively a journalist reese like lied in his journalistic career, about getting nominated for pulitzer, obviously fucking, didn't and then he's like yeah no, but you got ta trust me, i'm the one who knows how to do research anyway, moving on, like whatever maybe People change - let's actually look at this, let's, let's actually dive into this and see what's going on this, is it if you open it up and then you can um check it out, it's a legitimate paper. It doesn't take long in fact, you're gon na see that this quickly disappears on page. One quickly disappears on page one of why we shouldn't trust us, and this is fancy schmancy, commission savings and execution quality for retail trades by some big brain person and another big bad person just came out.

It is hot off the gutenberg press. You got ta, listen to it because it has fancy names on it: mit university of texas. You read the overview. This study examines commission savings and execution quality of off-exchange retail trades and comparable on exchange trades, using both public and private order and execution data.

We debunk some commonly held misconceptions about payment for order flow, and then they go on to support it. I seriously implore you to read it. It's 16 pages check it out because you have to understand just because you don't like something you don't just get mad and say it's chilling and fud. You have to know why it's fun and i'm going to let you do this in future things, but in this particular one, let let me let the cat out of the bag and explain why this is so horrifically messed up and, like i said you don't have To go further than page one page, one disclosure, some of the data for this paper comes from robinhood for purposes of simplicity and readability.

We refer to customers of robinhood financial llc in this paper as robinhood customers. The authors have a financial relationship with robin hood. Well so you're saying the guy who lied in the past is now supporting a public paper. That's in support of payment for order flow, throwing that paper up there.

We actively know the authors, these two big brains, financial relationship with robin hood, matt, matt matt. They wouldn't do that they're professors what's robinhood going on. Why would robin no way no way? No, how well check this out. So if you look at robinhood's ipo filing, why would this matter? Why would they go to the extents of paying people off robinhood markets? You could check this out if you come down to page 8 of their ipo, it's kind of interesting.

This was brought to my attention if i can ever seem to find it because they have a lot of pictures. Let me just fast forward. I need to go to the very first one right about here before all those pictures is loaded in right, a bit here summary of risk factors. This was when robin hood was going public because the majority of our revenue is transaction based, including payment for order flow.

Reduced spreads in security. Pricing is a risk to them, it's a risk to their actual business and with it and we're going to get into this. The practice of payment for order flow and why it's so insidious, why it's so nefarious is, with such a large amount of retail traders being segmented off exchange. A byproduct of that is the spreads, are widening the bid and ask it's widening.

Some studies are showing by about 25, so reducing the spreads, which would be good for everyone, better price efficiency, better execution, better everything you want the spread to be no no exchange of broker out there will brokers will but exchanges no one's. Like oh good thing. We have a wider, a wider spread, that's bad like! If you look at any of these exchanges, their competition is in how close they can actually keep. They want it to be, as close as they can and they're saying, robin hood that that's actually a risk to them.

It's a risk to them if it goes anywhere, they want it as wide as possible, which is just insane, and we already know. We already know that the actions which really the byproduct would like the business model payment for order flow, these actions of citadel invert to the effect of keeping all retail off exchange to the tune of 40 to 60 of all equities trading. It is widening that spread and i'll explain a little bit of how they pull that off, but before i digress too much so we have this robinhood going on paying for their own studies and you're like but matt. Maybe this is a one-off thing.

Maybe maybe this is just it they paid for one study, maybe it's right, just because you're paid, for it does not mean that it's necessarily inaccurate. Maybe they really don't. Do this that much okay, that's fair! Like that! That's, okay! You you should make me prove myself! That's completely fine robin hood, tripled prior years, lobbying spend in first half of 2020 2021. That's this year, spank my ass and call me vlad.

They tripled they tripled their lobbying efforts, folks holy shit. This is insane the people who are hiding behind these paid surveys. That's all this is it's a bullshit lobbying effort they're like yeah, we're going to pay for our own studies and then we're going to have dipshits tweet about it, because it seems somewhat like legitimate. This is such an obvious, an obvious amount of just interwoven, wall street corporate america, political bullshit, and it is so obvious if i can see this at 27 in my basement.

You know these people in suits the people on capitol hill, the people in the sec, the people on wall street - they all see it. They probably understand it better than i do. This is so egregiously malicious and, at the end of the day, all they do it. For they're going to keep upping their numbers, you can see it on open secret right here, huge explosion in lobbying.

Why do they do it? Why check this out? This is from gensler himself in may of this year. Robin hood explicitly offered to accept less price improvement for its customers in exchange for receiving higher payment for order flow for itself. As a result, many robinhood customers shouldered the cost of inferior execution. These costs may have exceeded any savings.

They might have thought they'd gotten from zero commission. Why? Why? Why why they in an effort to improve their own bottom line, because they clearly have a failing business model failing all-time low today, as i'm filming this remember, everyone touting it kramer, gasparino robin hood's, the best thing ever ever best thing since slice brand when in reality, This invention of robinhood, it's not similar to sliced bread. We all love sliced bread. This invention is much similar to lead paint.

It is very much similar to lead paint at first, you think it's good ooh cool. I have new paint on my walls and it's a little bit later, that you realize how absolutely fucking toxic it is, and this is exactly why reality is finally catching up to robinhood. Let's continue with all this, so you have this scenario. Actually, i should probably keep this up.

You have this scenario where a few people are supportive of payment for order flow, the practice of being paid to send all your orders to certain players. Of course, those certain players are supportive of it because they use that data to make money. Beyond that, you have shills on tv who are going to show it because they're assholes what this does mechanically and they've pulled it off. Well, you have an extreme amount of trading done off exchange, it's not done on lit exchanges.

This has widened the spread bid. Ask you can also hear this referred to as the nbbo. The national best bid. The national best offer the way they get rid of away with.

This is because it's widened so much they have it's widening the nbbo. They beat it by point: zero, zero, zero, zero one percent percent. They beat it and they're like hey we're, beating the nbbo. We we are doing so freaking good for you.

You should be so happy, but in reality that measurement stick of using the nbbo is archaic, because the people who are using it are the ones who widened it. It doesn't make any sense. We are all getting worse. Quality execution because of the extreme amount of off exchange trading and one business model that is continuing, that is payment for order flow.

This is impacting retail, yes, but the problem is far more problematic, far more problematic. Anything such as pensions funds etfs all of these when they are buying everyone, is getting a little paper cut time and time again, it's the continuation of millions, if not billions, of paper cuts that is detrimental to all of us. It adds up they're milking the system. Dry, getting the money, and, what's even worse than that, i would take it to the next level and say that there's so much concentration in power of these players specifically citadel securities at one point operating almost 50 percent of all of these training off exchange, we are Reliant on one player, two players, the duopoly, citadel securities and virtue saying it's perfectly fine.

It is perfectly fine. Our entire wall street economic system should be on the back of these two companies, which why should we trust in for them that i would say just from some of their social efforts out in the world they're kind of assholes, but beyond that, asshole or not? It doesn't make sense for us to be so much power concentrated in so few of players and for us, our safe, robust system to be completely reliant on that citadel was literally bragging that they were the only ones continuously providing liquidity during the gamestop event. Why are you bragging about that? You've eaten up so much market share that when things go to shit you're the only one that can withstand it. That is not a good system whatsoever.

It drives me absolutely insane. So i know i've been bashing on robin hood and they deserve it because they are a dumpster fire of a comp series and i'm 100 bearish bearish bearish on it, but unfortunately it doesn't really end there. According to 606 reports for the fourth quarter of 2020, the following nine online brokers, citadel was providing payment for order flow, so payment for order flow went from citadel to these brokers, robinhood e-trade td ameritrade, charles swab weeble ally. First trade trade station fidelity was also fidelity.

Did not get any payment for overflow for equities, but they did four options just so you know that's the second one. But beyond that, you have this weird scenario where sometimes brokers don't actually get payment for order flow, but they still end up sending a majority of their orders to citadel. According to these 606 reports, citadel ranked as the number one trading venue for sending both in stock and options for robinhood td ameritrade, charles swab, weeble, fidelity and ally, so i just want to bring this up to you because i know recently fidelity's been kind of dragged Through the mud uh, they over reported by 2.2 billion dollars, the amount of gamestop shares that were available to short whatever, and then, of course, they just like quickly blame it on someone else. If you're using these services use what you want.

Obviously, i think you should be off the payment for order flow if you are off of payment for order flow and you're on one of these make sure you know if, if you're, just letting fidelity route the order by itself there's a good chance, it still ends Up at citadel, that's why you need to directly route or what's really interesting, a new kid on the block that i think is changing. The game is public public.com, it's new brokerage and they are being as transparent as they possibly can be. Previously. They have accepted payment for order flow, but at the earlier this year i believe at the start of this year they realize that no, we don't want to do payment for overflow.

We think it's bad for the market and there's some very interesting things that i want to check out with all of you here. This was just posted on december, 2nd i'll put it in the link of the description below. I just want to go over the highlights earlier this year. We ended our participation in payment for order flow today, we're giving you a transparent view of how public has been able to achieve excellent price execution for our members without relying on market makers or payment for order flow.

No market makers, no payment for order flow. The takeaway, the data available to us strongly suggests that public delivers better execution quality on average to customers than our peer firms that accept payment for order flow from market makers. This is insane the entire argument of you need payment for order flow to allow for commission-less trading, and you still get that high quality execution. This is completely turning it on its entire head.

So that's the argument of like. If you want free training, you got to suck up payment for water flow. It's the only way, and before my metaphor, of it being more similar to lead pain. That's exactly what's going on, there is better methodology and public is living proof of it.

No payment for order flow, no market makers and yet still has commission free training. Once again, i implore you to read this entire thing. I just want to go through some of the key highlights. Understanding the relationship between payment for order flow and execution quality is difficult.

Since there is no industry-wide standard for reporting, execution, quality by retail brokers, a limited number of retail brokers, publish execution, metrics and those that do use different metrics that are not always clearly defined. The result, it's nearly impossible for investors to compare execution quality across retail brokers. This is by design; they want it to be complex and fucked up, so everyone feels confused and doesn't know what's going on. This is what this is par for the course for wall street and really how that all plays out.

They want it to be so messed up and complicated that no one understands it and it gets to the point that no one wants to understand it and then, through this shroud of mystery and complexity, people in the back end end up making money, and i have No issue with making money but they're making money at the cost of you at the cost of me at the cost of everyone. Really so there's a couple ways they can look at it. They prefer effective, spread over quoted spread, which represents how much price improvement an order receives specifically how close to the midpoint of the nbo, the national investment in offer. An order was executed.

Look at that so the closer to the midpoint, the better um. So public was about 33 percent away, while robin hood was 45., so robin hood, a brokerage that does payment for order flow, has awful execution look at this, and then you have public, which is free, no payment for order flow, and it's actually giving you better price Execution another thing is aob reflects the percent of shares that are executed at or better than mbbo at the time of the order submission. So in this one public dominated robin hood, 97 to 96 and then actually it was a little bit worse than weeble and then the difference here is just in the amount of shares below 100 or from one to 500. So what i think is cool about.

This is even with everything going on public's gone out of its way to be as transparent as possible and admit: it's not the best in every core category, but it's still highly successful in a market system, a market regime that is not supportive of players like this And it's still very, very close to competing. I like it. Let's continue so, even though it didn't it beat robin hood at this one, the at or better um. It didn't beat weeble but check this out.

Gross price improvement. Gross price improvement is the notional amount of price improvement received on shares executed at a price better than the national best bidder offer right here. Public beat weeble public beat weeble for both the sizing, that's awesome and then finally, we also have net price improvement. Some platforms also share net price improvement, which is measured by taking the gross price improvement per share and subtracting any executions that slip outside of the mbbo, then averaging that across all shares, traded and right here, public you have.

This information primarily indicates that public customers traded stock with narrower spreads on average. That's what we want remember narrower spreads. Why is public so easily defeating robin hood in wider spreads? Robin hood wants wider spreads because that's exactly what it needs for it to run as a business. That's incredibly incredibly important to understand.

Looking at the data across efq aob, the price improvement per share, it's clear that quality price execution is possible without rounding. The market makers in exchange for payment for order flow man that that's that's phenomenal, that's absolutely phenomenal. Moving on. There are three types of market centers, where retail brokers can route orders for execution.

Now i brought this up because market centers before people were like. What's that mean previously, i've used the vernacular venue. Venue is just a place where buyers and sellers meet each other. It can be an exchange, an alternative trading system or a market maker.

Those are three of the most common types of venues and then public is using the term market center. Every dollar they deliver in extra price improvement is a dollar less. They can earn on the trade, so their incentives are to deliver a price. That is just good enough to retain the contract with the broker, but may not be so good as other pricing that is available on the market once again, they've widened the spread.

They'll beat it by about point: zero: zero, zero, zero, zero one cent, they call it a price improvement, they pass it along to you. They keep the rest because they're a dumpster fire of a company. It is completely and utterly intellectually dishonest. It is a pile of bullshit.

Now, let's get into some of the specifics that i think a lot of you will actually care about. We want our customers to get the best price possible on every single order, so working with our partners at apex. I know there's been a lot of discussion about apex, but i think this is important: apex clearing internet and the execution venues. We use smart order, routing, sor software to locate the best price for each order available across 28, different lin exchanges and alternative trading systems.

Those are all the venues or what they'll refer to as market centers and then route that order to the venue that offers the best price. So i know, there's been a lot of discussion about apex, but what you need to understand is a little bit more of the business of being a broker when brokers are smaller or newer, such as public or robin hood or weeble. There's a certain economy of scale that it doesn't make sense for them to be their own clearing broker so at when you're below certain sizes. It's very prominent in this business model to use something like apex apex is the clearing broker for many many brokerages.

So when people say oh does like apex, do payment for order flow well, yeah for some of its clients. It does when the ones that like want that it'll set that deal up. But you can even see that the ceo of public was on twitter and he posted out. Yes, we use apex apex with some of his clients does do payment for order flow, but for them they do not just the fact that they apex does facilitate for that.

For some of its clients there is absolutely absolutely no payment for order flow and no market makers at all when you are discussing public apex is the clear broker and they might do some of that stuff with other brokers, but specifically not public in whatsoever. They're. Just a clearing broker, so let's break this down a little bit more. We currently execute across 28 different venues, aka market centers and execute 70 to 75 percent of our shares on a lid exchange.

We execute the remainder on an ats, an alternative trading system almost entirely in the case that when we are able to find a midpoint execution that is better than we'd find on the lid exchanges. This is phenomenal. So, right now in canada, about 10 to 15 percent of training is done off exchange. The rest is on lit exchanges, and the only way it goes off exchange is, if there's a material price improvement.

That's exactly what i'm seeing right here. Public is attempting to get it on a lid exchange, but remember they still have a duty to you that if they know they can get you a better price somewhere else, they have to go there. So this is crazy. 70 to 75 percent of the time, they're.

Finding the best execution price on lit exchanges - and it's only in that leftover, 25 of the time that they end up going offline exchanges which they legally have to do because they have to give you the best price if they can find you the best price. That's crazy, 75 of the time three out of four times. It is best to go on lit exchange, that's where the best price can be found, and then yet you have people such as citadel, such as vertu such as robinhood such as weeble all arguing that no, the best prices are actually all off exchange and that's why We do so much off exchange trading to the tune of 40 to 60 of all x-winning trades. I'm telling you folks the data in this the transparency in this.

This is groundbreaking and i would not be surprised if public has just started the domino effect of it becoming the most prominent commission free brokerage out there with this transparency, with this odyssey and honestly, without even any of that, the best execution on lin exchanges. This is crazy. This is crazy, crazy, good. This approach is working.

We're able to deliver better prices for our investors in aggregate than payment for order flow based models. This is based largely on delivering significantly better prices for a meaningful percentage of our investors orders. This is great, i'm on public, i'm happily on public. If you want public check it out, uh, you can find it uh public.com coors, but before i like go into my end here, i just want to remind you of one thing so back in 2004, when payment for order flow wasn't so hip when it wasn't so Cool when it was only being supported by the likes of bernie madoff in the early 2000s.

Remember this, the practice of payment for order flow, creates serious conflicts of interest and should be banned. Internalization without meaningful price improvement reduces competition limits. Price discovery leads to market fragmentation and should be banned. This commentary is from citadel remember when it comes to the world of tin, foil, hat, crazy, dumb money, apes, who don't know what they're talking about and they're just blatantly against payment for order flow.

Remember that that og person, the og person to speak against payment for order flow, because it is utter bullshit and it increases the fragility of our entire market. Remember that that first person was citadel itself and then they obviously change their tune when they realize that they can actually profit off of it. Remember that very, very important to remember so. Let me recap for you: payment for order flow is the process of a broker receiving money in exchange for sending all of its orders to a market maker, as in these orders, aren't competing in the free open market.

This hampers price discoverability. This has been said by the likes of big brains such as dave lauer by citadel itself, and also by people such as the previous new york stock exchange. President stacey cunningham people who are in the know all admit that payment for order flow is not a quality business model for our system. The people who are supportive of it are exclusively the people who are making money off of it or are obviously shills.

For said, people, if you continue to trade on a brokerage that engages in payment for order flow whatever? That's that's your decision, i'm just doing my best to present all the actual, accurate information to you, because right now there are people touting studies who are literally paid off by robin hood's lobbying groups who are intentionally distorting facts. It's a bad system and, of course, whenever there's billions of dollars involved, there's going to be people who are fighting tooth and nail to try to protect that system. The biggest power that we possibly have is to be technically accurate and know that we are fighting with the truth, supporting our back very, very important to understand very important for all of us to actually internalize. And i am very interested in what 2022 will have for all of us, because i strongly think that this model, this payment for order flow model which has already been banned in the uk, it's been banned by the european commission it has been banned by canada - has Been banned by australia, i think it is on the chopping block here in the united states.

I think there's gon na be a mass effort, a mass effort to make it as political as possible. I can already see the writing on the wall. They're gon na try to make it look like a left versus right, a red versus blue type of argument. Please understand it is not that whatsoever.

It is very much an argument of what is right, what is healthy, what is logical versus the exact fucking opposite, and it's the only one perpetuating that storyline are greedy pigs, who cannot take their mouth off of the trough whatsoever. So please understand: do not let this become politicized if you are involved in the market if you are involved in the economy, if you are just a person on this planet, this matters to you, it's not political, it is factual, know. The facts know the argument and don't fall for any of this bullshit that they try to spin to us every single day. All right, let me get back uh and with all these all of my sources, i'll link them in the description of the video when we get this clipped just so you guys know uh what questions do we have? Let me get back to this uh.

Can you follow up on pins call from this morning, uh pinterest pinterest pinterest pinterest pinterest um. So the follow-up is that you probably should have locked in your gains. I mean at this point like it went up and now it's just it's flat, but like now i don't know your expiration, but there's a chance that state is starting to eat into you. This is a nice gain.

I mean for a nice little play like this. Was shouted out by unusual whales um that that's an easy thing? I mean the fact that you just saw it and you're like oh okay, like this is a good opportunity. Um, you literally just that that's free money, free money right there matt. Why does my flight simulator keep crashing struggling to go to the moon? What's going on chris? How do spacks work will c f v i become rumble yes, so specs are commonly referred to.

It's special acquisition, uh special purpose acquisition, corp and basically it's referred to as a blank check company. So it's an entity, that's literally just a pile of cash and it buys all or a large portion of equity in a particular private company, and with that exposure, it's essentially bringing a private company public very, very important. They got very popular in 2020, and recently they were kind of quiet, but now they're picking up a little bit more so that question with cvfi, yes, cvfi is going to bring rumble. Public rumble is a competitor to youtube, and the ticker will eventually change.

Four dollar product calls for 1017. Any thoughts for wait be greasy 10 17., as in like october of 20 2022. If that's what you're asking about, i mean i like it, you bought yourself quite a bit of time, which i'm a fan of how much for the picture. Matt give me a number second thickest, tesla trader, wondering how much it oh 12.

17. I'm be greasy 12. 17., four dollars. I don't think you're giving yours no self enough time on that.

One, no you're giving yourself about 10 days 11 days, shout out prowess, oh, but anyway, uh tesla trader yeah. There was an interesting discussion of how much money it would cost me to sell my nudes online and there has to be a number somewhere which go profitable. Fundamental wish stack check, um so for a fundamental dive. Sweden.

I need a little bit more time, like it's kind of easier to do. Technicals like ad hoc, but i need to like gather some materials to be able to do a breakdown like that, a fundamental one. Why are you shilling for public now, uh they're, paying you? I have an affiliate deal with public, but that's also very obvious: i've never hidden that um. Is this a paid subscribe, video or like a paid whatever video, no not at all, it would actually be illegal for that to if i was compensated to make this um.

That's that's a huge issue if you're paid to promote something - and you don't disclose that you're promoting it, you get into a shitload of trouble uh. I am an affiliate with public, but that's because, like they're, a good brokerage like, should i not be discussing good brokerages to you ones that are actually transparent like a cross? I don't really get your question um. Yes, i'm an affiliate, but not a sponsor of like i don't i didn't get paid to, and it's factual folks. This is out there, they just posted it.

This is relevant news. Trust me. If public started doing something messed up, i would bash them it's it's! No different than weeble at first i was supportive of weeble. I learned about what was going on and now i bash weeble.

I and i shouldn't say bash. I explain the truth of weeble um. I am not beholden to anyone, i'm not beholden financially to anyone. I'm beholden to what i think is accurate and moral and right now i see weeble in terms of being free trade or not weeble public, in terms of free, like commissionless, trades being the best and um.

I still really like. I still really like interactive brokers. Uh! That's a paid one you're paying for transparency you're paying for even more honesty. But if you don't mind paying for your trades, i would recommend checking out interactive brokers.

Matt. Are you still doing unboxings, because i want to send you something we'll? Have you laughing can't find the p.o box uh so right now, i'm actually going to be moving in january. So i'm waiting to get a new po box irish uh. What is the difference between buying a call and selling input if they're, both technically bullish, um, because one of them your profit, buying a call is your profit is infinite while selling a put your profit is finite.

If you sell a call your max, if you sell a put in this scenario, your max profit is the premium that you sold it for. Well, if you buy a call, if the stock keeps ripping and ripping and ripping you'll make more money, they have a different risk to reward set up. Yes, they are both bullish bets, but their similarities kind of stop. There dave lauer tweeted me uh swooey, oh sweet yeah.

You should be watching right now. He just nailed it on the stream. Robin hood's ipo doc showed that reduced spreads better, for everyone are actually risked to robin hood's business model. This should help place their funded research.

In context, that's exactly what it is like. Why is robin hood? Paying reduced spreads? They they don't want spreads to reduce. That is a risk to them summary of risk factors it's so insane. It is so all these intellectually dishonest arguments that are going on.

It's just absolutely ridiculous ridiculous, but matt moving to miami. I wish i wish i wish. I wish thoughts on amc issuing io and amc nft amc partnered with wax on project, so i believe that this nft issuance is as it itself i don't think, is changing anything. But i think it's an interesting piece in the overall puzzle of amc's leadership team getting closer and closer to using blockchain, particularly maybe nfts or stos, or something like that to verify a share count um.

So this one particular thing. I think it literally has zero impact on the stock like if you looked at this in a vacuum, and nothing else was going on um all of it it self-declared owners, like you, don't have to verify that you own shares, you don't have to verify your share. Account or anything you literally click a box, and you just say i'm an owner and they're like cool you're, an owner they just like, believe it. So we can't use that data as anything viable.

But i do see to me the writing on the wall. Is that the leadership team is creating like a breadcrumb trail of them utilizing nfts, because right now the previous pushes do stos do seos we're going to prompt to squeeze. You can't do that. That's hyper illegal if you're doing something with the exclusive effort of trying to squeeze shorts, that a lawyer would argue manipulation, and it would be a big headache for that, like a big legal headache, but a better way to go about it, at least.

In my humble opinion, i'm no lawyer, i'm no lawyer whatsoever um, is to create a history of business practices where you're already using something like that, and it's not so out of place. So i like it. I think it's a direction, a step in the right direction. I'm excited to get mine for sure, but it itself living in a vacuum.

I i don't think's that impactful for the stock uh matt hang in there you're an og. I spent a lot of time defending you because folks hate your success. Uh. It would help if you disclose your shares.

Uh i mean i have. I showed proof that i own shares that i mean i showed official pdf statements um and also, if you go on public like if you follow me on public, you can see what i own. It's it's like what's funny is um people ask me like they're like prove it prove it like folks, it's on, like public, is named pretty properly. It's called public.

If you follow my account, you can see what i own and you can see that i own amc and gme. It's like it's not hard to unearth this information whatsoever. Literally just matt core is on public and you'll, see what i own on public uh. My personal stake in all this is hearing coors rants happy monday morning, shout out darken flame uh time for a seat at the table.

Bro. Thank you continue to reach. When teach went back to the education love it shout out to brown. It's also really.

None of our business i mean, and i get that, but i like, i guess it's not like i'm high, like i'm, i'm happy to be an amc owner, i'm happy to be a prague owner, i'm happy to be a gme owner like it's. It's there. It's public like it's just it's weird to me how much people are willing to just believe random, reddits, believe random, tweets or believe the ramblings of a crazy person on youtube like it's. I don't know folks, i'm in amc, i'm in gme, but also, if i weren't, which is not accurate, because i am but if i weren't would that change anything? Would that change the nature of me explaining manipulation and educating and having 60 plus million views in support of essentially aimc and gme comb, adding the current extreme nature of market manipulation? Let's just say i had no money to my name like let's say i had no money whatsoever and i just didn't even own a stock like what? What would that change? I i just don't.

Quite i don't get it did. The internet lie to me again. All right, where are we, how much? Oh wow, i'm sorry, my um, my rant took up a lot of time. Well, if you want to know, i was going to also explain v wap, but i'll do that tomorrow, um for like the technical teaching, but for the payment for order flow thing.

Um for that, like breakdown and the insanity of. What's going on we'll get that clipped on coors light we'll get that clipped over on coors light? Actually we have some time we could do v-wap, v-op, v-op v-wop. Let's talk about technical indicators, the volume weighted average price v-wap. So this is the v-wop line right here.

What you need to know about v-wap is not too much it's a very popular indicator. It's on many charting platforms. Once again, it is the volume weighted average price. The way this is calculated is basically you take the price that all shares are traded at, like five shares were traded at 458.66, then 10, at whatever all the amount of shares at their price, divided by total volume.

So the volume of the particular trade multiplied by the price divided by the total volume gives you v-wap and at a higher level it lets you know of okay, the average person in that day are they underwater or over water like are? Are they good? Are they in the green or is their head a little bit underwater? Are they in the red, so this does reset every day. That's why you see like a weird little jump like this, so when it started for today we started training and you just start to see where the average price is that someone's in uh weighted the volume weighted one. So a lot of people will use this to know as like. Okay is the general involvement.

Are they feeling good? Well today, they were because most people were in at an average price right now, 458, but we're trading at 458, 57. 56. So the average person they're feeling calm, they're feeling cool they're feeling collected they're in the green. There are other ways to use this.

People will use this line as support. So, for example, this morning, when the s p, 500 was dancing around, you saw that it was support it kind of acted as support between 954 and 1006. This morning it could all on the flip side. It could also act as resistance if we're under it right here you can see from friday of last week.

It actually was kind of like a resistance barrier at the morning and then the whole market sold off, so it could be used as support as resistance. I've seen that multiple multiple times you could also use it for signals of like when it crosses above and holds above v wap. You might use that as your entry, so, for example, on friday, it crossed above, and it held above right before market closed. That could have been an entry signal or you could use it when it crosses below to be some sort of sell signal or maybe um.

You want to lock in your gains at that point, but overall vwop volume weighted average price. It's all the trades multiplied by the price divided by the total volume. It's a little bit referred to as a lagging indicator, because it takes time to like process that it's not going to be like ex, like right up to date per tick, so you're processing it. It's a lagging indicator very popular indicator above it generically considered to be bullish below it, generically considered to be bearish once again.

That is v-wop also ding-ding-ding. The market has closed. The market is closed up to kick off the week. Uh monday december 6..

Amc closed out. The day at what do we have 28.79 gme is 167 12.. Both were in the red amc down point seven: six percent gme down three percent: prague had a nice day, it gained 46 cents, which means it was up almost nine, almost 20 percent 19.5. So i very very much like that: prague having a good day, the overall market spy in the green by percent solid day, the q's up 0.8 was looking a little bit iffy.

So i'll. Take that and then the russell 2000 almost up two percent, so the russell killed it today. So both those calls from unusual whales, russell and pinterest both of them, you would be in the green and personally, i would have already locked in my gains, both of them. Probably already had inaccess from the the signal firing was probably already up more than 10 percent, so i would have locked that in probably before market closed um holy man, i'm selling some shares at a loss to pay rent.

I've been holding out trying to make it us, i'm pretty sad about it. Kinky kong, you're gon na come back. Fighting you're gon na come back fighting. It is a okay.

You got ta, do what you got. Ta do um, i'm not gon na hold down against you whatsoever. I know: you'll come back even stronger, shout out the deaf guy uh cl glam whirlwind uh justia shout out shout out shout out um folks. That is it for power hour today.

If you want to refer to the v-wap breakdown in the future, if you want to refer to the payment for order flow breakdown in the future, both of those will end up on coors light this evening, and i will be doing an update video on this channel Today, just also so you know uh beyond that, for tomorrow morning, i will be streaming once again at the crack of dawn at 9 00 a.m. I hope to see you there overall. Thank you for all the support today.