"Paying for Liquidity"

Removing liquidity from an ECN is paid for by the trader to the ECN,where then the ECN gives some of that to the trader that is adding liquidity.For example,to remove liquidity from ISLD,you pay .0019 per share.When you add liquidity,you get .0011 per share.
 
Originally posted by Vinny1
Removing liquidity from an ECN is paid for by the trader to the ECN,where then the ECN gives some of that to the trader that is adding liquidity.For example,to remove liquidity from ISLD,you pay .0019 per share.When you add liquidity,you get .0011 per share.
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thx
 
ISLD Island $0.0019,
Island charges for taking away liquidity
this means hitting a bid or an offer
-$0.0011 for adding liquidity!!!
and gives this for placing bids/offers slightly outside the market.




INCA Instinet $0.0030,

Charges this for taking away liquidity

-$0.0020 for adding liquidity

but when you add liquidity they pay you this.

If you are a trader that places bids/offers slightly outside market waiting to get hit this helps lower your overall cost.

Robert
 
I sometimes strictly trade on rebates, and believe me the rebates could amass a couple of thousand dollars in a day. Apply that to very low if any commission and you have an extremely profitable day/month/year.
 
I agree. When there is a stable, per share broker (charging .01/share or less) who will rebate for liquidity, they will clean up. Hint, hint IB.
 
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