Your spread is your revenue. Every time a trader exploits a stale quote, front-runs a price move, or churns volume for rebates, they’re taking money directly from your book. Most brokers don’t know it’s happening until the monthly P&L review — by then, the damage is done.
PNL Factory detects toxic flow continuously through the trading day, with three of its five independent engines, each built to catch a different class of abuse that traditional tools miss.
Detects traders exploiting the speed gap between the real market and your price feed. Multiple independent evidence streams analyze execution behavior, timing patterns, and infrastructure. A trader can disguise one signal. They cannot disguise them all.
Identifies traders with consistent information advantage. Measures entry precision, how much of the subsequent move they capture, and how quickly they exit. When these dimensions align across multiple trades, it is not luck — it is structural advantage.
Identifies artificial volume designed to extract rebates and commissions rather than participate in the market. Analyzes revenue impact, trading behavior, pattern consistency, and volume characteristics to reveal the intent behind the activity.
A single front-runner can extract more value in one month than 100 retail accounts generate in spread revenue. Neutralizing toxic flow is the highest-ROI activity in risk management.
