Island Rebates / Charges

[swoop[TR]]

Could anyone care to explain to me what "providing liquidity" to the Island book is? What would be considered "removing liquidity" from the Island book?
I just don't understand this concept.
Thanks for your help

 

[vladiator]

Quote from swoop[TR]:

Could anyone care to explain to me what "providing liquidity" to the Island book is? What would be considered "removing liquidity" from the Island book?
I just don't understand this concept.
Thanks for your help

In a nutshell, you provide liquidity when your limit order is the best bid/ask, you take liquidity when you hit those.

 

[slickville]

Quote from vladiator:


In a nutshell, you provide liquidity when your limit order is the best bid/ask, you take liquidity when you hit those.

HEY WOW DIDNT KNOW THAT DUH