naa man, you can place your limit order at the price you like and wait till it gets to you, when it does [if it does] you added liquidity at that price. The thing is that if it doesnt get filled you dont get nothing. And if the price just drops 50 cents right through you, well you get your credits, but you're still stucked on a bad trade.
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Rebate trading.
- Thread starter eusdaiki
- Start date
Quote from eusdaiki:
naa man, you can place your limit order at the price you like and wait till it gets to you, when it does [if it does] you added liquidity at that price. The thing is that if it doesnt get filled you dont get nothing. And if the price just drops 50 cents right through you, well you get your credits, but you're still stucked on a bad trade.
So if you only use limit orders in your trading, is there any downside to participating in liquidity rebates?
Quote from eusdaiki:
that is unless there's noone adding liquidity at attain, then you can use it to cross the market, and it gets it quite fast. That makes it a great way to get in fast, or out fast, while getting paid big time.
I don't understand what you mean here....if you use attain to cross the market, wouldn't the rebate you get from your fill be negated by getting filled at a worse price?
Also, I am interested in whether rebate trading is viable for someone paying a low per share commission of .0015, or do you need to have fixed price commissions regardless of order size and then scale up to 5000 share or more size for this strategy?
Is the goal in rebate trading to just collect the rebates, or are you looking for setups where you can be gross profitable? Losing a single penny gross on a trade would negate a few winning trades, so is this strategy only viable on stocks with sub-penny spreads?
not really a worse price.Quote from PnL Rally:
I don't understand what you mean here....if you use attain to cross the market, wouldn't the rebate you get from your fill be negated by getting filled at a worse price?
Also, I am interested in whether rebate trading is viable for someone paying a low per share commission of .0015, or do you need to have fixed price commissions regardless of order size and then scale up to 5000 share or more size for this strategy?
Is the goal in rebate trading to just collect the rebates, or are you looking for setups where you can be gross profitable? Losing a single penny gross on a trade would negate a few winning trades, so is this strategy only viable on stocks with sub-penny spreads?
If stock xxxx is at 1.98 bid 1.99 ask... you buy at 1.98 through island... and then exit at 1.98 trough attain... you just made your self around 0.47 cents. do it 3 times and you've gotten a bigger profit than buying at 1.98 and selling at 1.99 once.
0.0015 per share = .15 per 100 shares... it would make it very difficult for you to take a profit... when you're getting around .2 per 100 shares.
You'll need way too many shares to do a profit... and something like 20 trades to get backa single point gross.. i dont think its profitable...
true rebatetrading consists onprofiting mostly out of rebates, gross gains are welcome but never sought. when the price is about to change, rather than seeking gross one seeks to enter and exit several times.
Quote from eusdaiki:
Of ourse we use attain ecn. The problem is that they also charge the highest comission for removing liquidity, around 0.5 so it's usually the last one to get hit...
that is unless there's noone adding liquidity at attain, then you can use it to cross the market, and it gets it quite fast. That makes it a great way to get in fast, or out fast, while getting paid big time.
would you please post a specific example?
I'm not sure I would call it "nickel and diming". There's some guys at my branch who easily flip huge size and make more in one trade than some people do in a day here. Of course, the only way to make good coin with that strategy is if you get the dirt cheap per lot commissions that we do.