what do you mean i have to pay the price between the bid and offer back? how does this work? could you eleborate it a little bit?
Using SLIP to short
- Thread starter chiefraven
- Start date
If you SLP into a spread I think greater than 3 cents on avg, you will be charged extra and if you SLP into a spread of less than 3 cents on avg, you will get a rebate.
'cuz i just noticed it when i got home when i was going over all the trades and my p/l.... and i was astounded.
you hit the bid and get the offer as your official fill, but you still have to pay that spread back to essex. Hit .35 get filled at .39. pay the extra .04 difference on your sheets. actually the ticket charge assumed a .01 difference so you only would pay an additional .03 cents in that above example.
Steve I know I never got rebated for an SLP. I was being charged 3 cents/ shr.
I hardly ever use them, but a few guys at my firm do a lot and they say that once a month, they either get a rebate from essex or they get an additional charge.
I've just come across this forum and now this thread and can't believe the malarkey I'm reading.
First of all, from what I understand SLP is an acronym for Short Liquidity Provider. Essex is a liquidity pool, which also makes them an LLP (long liquidity provider). Look at www.essexradez.com. Look under V-Fill. Your B/D imposes any restrictions that are spoken of here. There are certainly no spread limitations on Essexs part that I'm aware of.
Essex is a brilliant group from my experience. They only ever try to offer the cheapest fill they can. For example: If I sent an order 5 cents (or 10 cents for that matter) below the bid, they will quote me .02 or less if they can. If they can't quote me, they reject it and give me a new quote outside of my limit. I trade several different stocks therefore it makes a whole lot more sense than conversions. They offer nearly any listed stock fill, though I think it's limited to only direct plus eligibility on the short side from my experience?
Essex certainly doesn't buy prior to filling your short order. They post a quote and place themselves at 100% risk by taking the other side of the order! Their quote (if your firm is showing it) is your net cost plus whatever your firm decides to charge.
Bomber
First of all, from what I understand SLP is an acronym for Short Liquidity Provider. Essex is a liquidity pool, which also makes them an LLP (long liquidity provider). Look at www.essexradez.com. Look under V-Fill. Your B/D imposes any restrictions that are spoken of here. There are certainly no spread limitations on Essexs part that I'm aware of.
Essex is a brilliant group from my experience. They only ever try to offer the cheapest fill they can. For example: If I sent an order 5 cents (or 10 cents for that matter) below the bid, they will quote me .02 or less if they can. If they can't quote me, they reject it and give me a new quote outside of my limit. I trade several different stocks therefore it makes a whole lot more sense than conversions. They offer nearly any listed stock fill, though I think it's limited to only direct plus eligibility on the short side from my experience?
Essex certainly doesn't buy prior to filling your short order. They post a quote and place themselves at 100% risk by taking the other side of the order! Their quote (if your firm is showing it) is your net cost plus whatever your firm decides to charge.
Bomber