liquidity trading

My favorite comment on this was from Chisox....

Originally posted by chisox
not to mention all the piss ants spending their entire day trying to get paid for adding liquidity
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Hilarious

Attain prop traders are doing it as well as the LSPD MKXT traders. SOme are doing pretty well at it.
 
Only 3k a day? Why even bother.


Of course, thats the average, I assume the good ones are making 10k or more, and I MAY be interested.

What does that take, 20 or 30 million WCOMQ?
 
Here is the deal with NTRD.

They pay you 2.5 per thousand shares traded minus losses and minus ecn fees. So if you do 1,000,000 shares, your gross payout is 2500 for that day. To do that you have to risk 2 - 4 cents if it is a volatile stock. So you can try to buy 100-250 k shares a time with momentum of the stock against you(because you will the last one standing for someone to hit you). then in turn you have to sell it the same price or better to make money.

But if the stock goes against you, then you have to sell out and pay high ecns fees.
 
I really would like to know the overall sentiment from those of you doing / attempting this. We are debating the pros and cons to charging ECN fees and offering the flow through liquidity payments. So far, most of our people don't want it...but, please keep the comments coming...

Thanks


Don
 
Originally posted by newtrader101
Here is the deal with NTRD.

They pay you 2.5 per thousand shares traded minus losses and minus ecn fees. So if you do 1,000,000 shares, your gross payout is 2500 for that day. To do that you have to risk 2 - 4 cents if it is a volatile stock. So you can try to buy 100-250 k shares a time with momentum of the stock against you(because you will the last one standing for someone to hit you). then in turn you have to sell it the same price or better to make money.

But if the stock goes against you, then you have to sell out and pay high ecns fees.
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That is retarded, at best.
 
it really doesn't sound any different than just getting a discount. I don't know how a person can make a living off of getting discounts, they still have to make a gain on the trade somehow.
 
Didn't realize there was already a thread on this. I posted this in another thread just a short time ago.
Any input appreciated

Originally posted by marcD
Yesterday I went to meet the manager of a new branch of a firm that owns and runs an ECN.

Their deal is to pay "traders" to add liquidity.

If you can open positions on the right side (buy on bid, sell on offer), you get paid between $1.75-2.50 per thousand shares. The numbers they show on their example sheet is for a million shares a day. This looks very sweet, in that you would make $2500 a day.

It seems to me that it must be a lot more difficult than they make it look like. Obviously you should be able to open all the trades on the "right side", but if you have to hit a bid or offer to close the trade, the cost is greater on the closing side than the credit on the opening side, so you will lose money (significantly more than you would make on the opening trade).

I was wondering if anyone here has traded this way and if they thought it was a viable way to make money. Also, is there a possibility that the company (nextrade) just wants to get their volume up enough to become a "player" as an ecn, and then will have no further use for the traders that they hire to create liquidity.

They do pay a nominal training salary for I think 10 days, then give a small draw for a while. So that seems to provide some degree of commitment on their part, but I am not sure if this is just an inexpensive way to get their ecn off the ground. I have no familiarity with this ecn, yet they told me they have been around for a few years.

Any thoughts?
Thanks,
Marc
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