Is there a way not to remove Liquidity?

Most ECNs have order types for avoiding liquidity taking . Check out the ecn rule books.
At bats the order type is called "post only". If your order would remove liquidity at bats or via routing at an other exchange it will not be accepted.
So you can avoid sending an order . and a microsecond later being a taker instead of a provider
 
in my hypothetical case with inside quote on bats as 40.11X40.12, can I post an order to bats to sell at 40.11 where the order is waiting to be lifted by others instead of my hitting the bid on the book?

Quote from autocore:

Most ECNs have order types for avoiding liquidity taking . Check out the ecn rule books.
At bats the order type is called "post only". If your order would remove liquidity at bats or via routing at an other exchange it will not be accepted.
So you can avoid sending an order . and a microsecond later being a taker instead of a provider
More...
 
If you use BATSALIQ, which is the "post only" route for BATS, it will not execute an order where liquidity would be removed. However, in a situation like your hypothetical case below, if the BATS book already has bids waiting to be hit at 4.11, then using BATSALIQ will be of no use if you are trying to sell at 4.11. Your order will simply cancel out if it doesn't add liquidity. Only way you can do what you want is if there are no orders in the BATS book at a particular bid/offer level. However, simply because you don't see the BATS book showing up on the inside bid/ask does not mean that there are no orders there. In all likelihood there are hidden orders. So using BATSALIQ would be the best way to protect yourself in case there are hidden orders that are not shown in Level II.

Hope that helps.


Quote from trend2009:

in my hypothetical case with inside quote on bats as 40.11X40.12, can I post an order to bats to sell at 40.11 where the order is waiting to be lifted by others instead of my hitting the bid on the book?
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Quote from forsalenyc:

but to answer your questions. YES.

make sure your orders don't route to any other exchanges(in other words, turn 'off' your proactive features). find the exchange that's not showing at inside bid in L2. then put in an offer at that bid, and other ECNs will route to hit your offer. if you run into a hidden bid (same exchange as your order), there's nothing you can do.
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You are wrong, you will not be able to put such offer.
 
Many traders get distracted by wanting to get adding liquidity rebates. Often they overlook the impact of execution cost in missing a market. Especially true with any type of arbitrage strategy. I analyzed a few pairs traders executions and realized putting in Stealth, Waves and Priority was saving them well over 1 cent per share traded. This makes thinking of rebates sub-penny wise and whole penny foolish.
...greg
 
Otherwise, find the next best entry and exit opportunity. My firm gives rebates for adding liquidity, but it is only available with select stocks.

If liquidity is there then by all means get some of the rebates.
 
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