Liquidity Trader. Need Help.
- Thread starter New_Trader01
- Start date
The only way to trade this style is with ZERO commission, or with bare minimum. KLAC is not a liquidity trading stock, you must be sick in the head to trade that for rebates. As far as making 6 figures a month, it might be tough. Receiving that before your split , yeah, it is possible. It can be done though, I just haven't seen it yet. Many have got close but not over that hump yet.
I know that liquidity traders are not trading KLAC like they are SUNW, but it is happening on a smaller scale. Now that firms are offering liquidity rebates that they didn't give out a year or two ago, like on INCA and BRUT, as soon as you post a bid on either, you are immediately sliced by a fraction and so on with mega ecn keys until your scalp is worthless, since there is little follow through in this market. That used to only happen repeatedly on isld, and we could get around that happening by posting on isld hidden infront of the only visible isld. Now it is a slugfest for pennys on all nasdaqs, even the higher priced half dozen left. The people that used to only use isld because they would get liquidity rebates on it, are now using 4-5 ecns for the same, and they are throwing them out there at the same time killing moves. One guy throws out a isld bid, the next counters with an inca bid, the next slices the inca and isld and adds a brut, then someone slices them with a mega ecn and you are running to cover the loser. I am just pretty negative on the nasdaq right now, as you all can tell, and I am tired of playing that game. I want to get back to TRADING, and the NYSE is where that is available to me right now. I am not saying I won't ever come back to nasdaq, because I actually get bored to death trading NYSE, but I am staying away until the Nas trades better again. And none of the comments about not being able to trade nasdaq, I was still making decent money scalping Nas. It was giving me ulcers though, and that has gone away with my transition to NYSE.
It will probably help as long as that particular ECN joins supermontage. I personally hope it hurts them. I do alot of volume(am a scalper) and these expensive ECN's get in my way and there fees add up. They are simply there to flat the trade. I don't see liquidity trading being around for that long especially for those ECN's that don't join supermontage.
This is an exerpt from Securitiesindustry.com -------
Track joined SuperSoes in April, inspired by the then-roaring success of MarketXT, the first ECN to make its debut on SuperSoes, the platform where market participants cannot decline execution and thus found themselves subject to ECN fees. MarketXT ran into problems when other SuperSoes participants declined to pay ECN fees, which, in turn, hampered its ability to hand out the promised rebates.
http://www.securitiesindustry.com/midweek.cfm?article=601
Supermontage will be an auto execute similar to supersoes, so hitting an ECN or MM will be "the luck of the fill" It will be LSPD and TRAC all over again. Right now TRAC's collection rate is similar to LSPD. The only difference between the two is that they don't promise the rebate unless they get paid first.
With Supermontage working in a similar fashion with the autoexecte feature, I doubt that MM like NITE or anybody for that matter will pay ATTN $9 per 1000 or NXTD $15 per 1000 under this system.
The only way these ECN's can survive in Supermontage is if they lower their rates. But....... if they lower their rates, they can't pay such a high rebate.
I suspect that the outcast ECN's will become "free" and make the sure money. $1 per 1000 for Nasdaq and $1 per 1000 for the ECN (just like hitting a MM). Sure money... no collections... more volume, it just makes good business sense. But that means no rebates either.
My suggestion to liquidity flippers..... start learning to trade !!
Banker
Track joined SuperSoes in April, inspired by the then-roaring success of MarketXT, the first ECN to make its debut on SuperSoes, the platform where market participants cannot decline execution and thus found themselves subject to ECN fees. MarketXT ran into problems when other SuperSoes participants declined to pay ECN fees, which, in turn, hampered its ability to hand out the promised rebates.
http://www.securitiesindustry.com/midweek.cfm?article=601
Supermontage will be an auto execute similar to supersoes, so hitting an ECN or MM will be "the luck of the fill" It will be LSPD and TRAC all over again. Right now TRAC's collection rate is similar to LSPD. The only difference between the two is that they don't promise the rebate unless they get paid first.
With Supermontage working in a similar fashion with the autoexecte feature, I doubt that MM like NITE or anybody for that matter will pay ATTN $9 per 1000 or NXTD $15 per 1000 under this system.
The only way these ECN's can survive in Supermontage is if they lower their rates. But....... if they lower their rates, they can't pay such a high rebate.
I suspect that the outcast ECN's will become "free" and make the sure money. $1 per 1000 for Nasdaq and $1 per 1000 for the ECN (just like hitting a MM). Sure money... no collections... more volume, it just makes good business sense. But that means no rebates either.
My suggestion to liquidity flippers..... start learning to trade !!
Banker