scalping and NYSE rebates

yea, the guy who said "one side or the other" is badly misinformed, but lets try to stay on topic. when using NYSE, the scalper can get filled on both sides without being crossed, meaning he can make net profit and $1/1000 rebate, correct? other networks=better rebates but worse fills, meaning netting a profit would necessitate holding position against you for it to come back, correct? just want to make sure im understanding.. thanks
 
Quote from di1836:

yea, the guy who said "one side or the other" is badly misinformed, but lets try to stay on topic. when using NYSE, the scalper can get filled on both sides without being crossed, meaning he can make net profit and $1/1000 rebate, correct? other networks=better rebates but worse fills, meaning netting a profit would necessitate holding position against you for it to come back, correct? just want to make sure im understanding.. thanks
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You are correct.
 
Quote from NY0BScalper:

You are correct.
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so from your experiences, which is the better method? going for the highest rebate and to hell with net profits or posting on NYSE and taking advantage of the better fills to make a net profit?

alsoare better on NYSE than anywhere else? why? is that?
 
Quote from di1836:

so from your experiences, which is the better method? going for the highest rebate and to hell with net profits or posting on NYSE and taking advantage of the better fills to make a net profit?

alsoare better on NYSE than anywhere else? why? is that?
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Try posting on two ecns simultaneously and see how they fill. Some days some routes fill better in some stocks. If you post on NYSE and EDGX and everytime you get a NYSE fill you also get an EDGX fill then you should just stick with edgx... but if you're not getting as many fills stick with NYSE... must adapt, nothing rigid, though if you have to ask me my bias is towards more fills, lower rebate.
 
Quote from brownegg:

I'm not a rebate player, but I didn't know of a restriction re: bidding and offering. Got a reference to this or a brief explanation?
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Both sides = you can not be long and short the same thing in the same account. I didn't mean you can't provide liquidity on the entry and the exit of the same trade - I provide liquidity on both sides all day long however I'm not long and short the same ticker at the same time.

Correct me if I'm wrong but I highly doubt IB allows you to be short GOOG and long GOOG at the same time. You guys need a better grasp of market making before you jump on the bandwagon.

Yes, anyone can post a bid 5 cents below, get filled and then post an offer 5 cents above, make $0.11 and go home with $110.
 
Quote from WinstonTJ:

very few people and yes, you pretty much have to put out a bid/offer (only one because you can't be on both sides) and wait for the market to come to you.

Its very hard, takes a lot of capital and a lot of programming.

Anyone thinking they are going to get into the rebate game has another thing coming - its next to impossible.
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why is the rebate game next to impossible winston?
 
In modeling out a breakeven (provide on NYSE and get paid to remove on CBOE) trade I am coming up with a profit of only around .0006 cents a share ( or $60 per 100,000 shares ) after commisions, taxes and fees.

Does this sound about right?

I understand everyone has their own deals concerning commisions and splits but I am just wondering is my model close to accurate.

Thanks
 
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