Got charged negative commission at IB? (I got paid to trade?)

[Jospe]

Hey guys, not sure if this was the place to post this but I'm using TWS on Interactive Brokers so I figured it's related!

So i sold a few naked puts the last month, and when I checked the commission I got charged, they were negative?! Commission fees listed were -$0.55, -$0.75, etc. for naked puts with 10-15 contracts each. Which means I was credited that amount, instead of charged.

I'm not complaining (although I do want to rack up enough commissions to cover the monthly minimum haha!), but can anybody explain to me why this is happening?

For what it's worth, when I check the exchange the trade was routed to, it seems a lot of these negative commissions went through BATS.

 

[wiesman02]

So let's get this straight, you are selling naked puts and wondering why your account was credited money ? I hope u are joking...

 

[Amalgam]

So let's get this straight, you are selling naked puts and wondering why your account was credited money ? I hope u are joking...

 

[Jospe]

LOL you guys don't understand my question?

I'm talking about the commission I was charged -- not the premium I get for selling puts haha.

Wow I'm honestly stunned you completely missed my question. Are you guys trolling? When you trade options you always get charged commission whether it's Interactive Brokers or other brokers. Some brokers charge a standard $9.95 + $1 per contract (or similar).

Do you understand my question yet? LOL

 

[IAS_LLC]

I dont trade options, but you may be getting a rebate for "adding liquidity" ? Just a guess.

 

[1245]

LOL you guys don't understand my question?

I'm talking about the commission I was charged -- not the premium I get for selling puts haha.

Wow I'm honestly stunned you completely missed my question. Are you guys trolling? When you trade options you always get charged commission whether it's Interactive Brokers or other brokers. Some brokers charge a standard $9.95 + $1 per contract (or similar).

Do you understand my question yet? LOL

What symbol did you trade and did you add liquidity?

1245

 

[convexx]

The OP is an asshole, but BATS rebates 0.45 to 0.50 per contract for adding liq. It was really difficult info to come by: http://www.batsoptions.com/

 

[Jospe]

The OP is an asshole, but BATS rebates 0.45 to 0.50 per contract for adding liq. It was really difficult info to come by: http://www.batsoptions.com/

Thanks for the answer. But by OP you mean I was the asshole?

 

[Jospe]

What symbol did you trade and did you add liquidity?

1245

Yeah that must be it. I've traded tons on a few other brokerages before (on the same tickers) and have never gotten a negative commission before, that's why I was surprised about this.

The tickers I got charged negative commission for were: QCOR, VIPS, MPEL.

Looks like BATS is the exchange that's giving me this rebate.

 

[Jack_Larkin]

You still paid a commission to IB. The commission itself was not negative.

The rebate you received for providing liquidity (likely) made up for said commission and then some.

Welcome to the maker-taker model market.