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Re:Launch HN: Double (YC W24) – Index Investing with 0% Expe... by nobodywillobsrv on Thursday December 12, 2024 @02:34AM (#42397050)
Adverse selection goes both ways. If PFOF leads to adverse selection against your flow then it's not win-win. You might say you are willing to trade of adverse selection up to the cost of the fees, but then you are trading a known fixed fee for an unknown stochastic penalty. And also who sets the fees?

The entire thing is adversarial and it's really just a choice of game you choose to play.

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