The Problem With Payment for Order Flow

One of the problems with value at risk and a, you know, option pricing is that we make that simplifying assumption that it is a normal distribution. And as anybody whos spent any time in the markets or read anything, knows, a the thousand years storm rolls around about every seven years. It's difficult to conceive of these gigantic moves, these gigantic waves that come through, until you've seen them. If you're not ok with this falling 50%, 60% then you really shouldn't be in the market.

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