No it isn't. I've worked at an HFT, this is not why they buy the order flow.
Retail order flow is worth buying because it's what's called "non-toxic". That means the retail traders generally don't know which way the market is going, ie they are either wrong or too small to make the market move against the market maker.
Contrast that to trading against a hedge fund which might have a better clue and is potentially large enough to push the market in some stock.
Retail order flow is worth buying because it's what's called "non-toxic". That means the retail traders generally don't know which way the market is going, ie they are either wrong or too small to make the market move against the market maker.
Contrast that to trading against a hedge fund which might have a better clue and is potentially large enough to push the market in some stock.