Will Credit Trading Last and What May Kill It?

[Rock and Ice]

I remember some guys on here saying the credit trading done by a number of prop traders may come to an end, and end to the strategy.

Does anyone know why exactly this may happen?

To recap - this refers to the credit and debit to the trader from the ECN per number of lots.

Or am I out of touch, and is it dead already?

 

[NY0BScalper]

Quote from Rock and Ice:

I remember some guys on here saying the credit trading done by a number of prop traders may come to an end, and end to the strategy.

Does anyone know why exactly this may happen?

To recap - this refers to the credit and debit to the trader from the ECN per number of lots.

Or am I out of touch, and is it dead already?

ECNs will continue to offer rebates to encourage liquidity being added.

 

[Don Bright]

Quote from Rock and Ice:

I remember some guys on here saying the credit trading done by a number of prop traders may come to an end, and end to the strategy.

Does anyone know why exactly this may happen?

To recap - this refers to the credit and debit to the trader from the ECN per number of lots.

Or am I out of touch, and is it dead already?

Still alive and wel, but not really worth the effort by most traders. I do use it for many of my "park on ARCA" trades intraday. Adds maybe $500 - $2000 per month, but is also a bit risky, and cannot be used for hidden liquidity pool routing which pays full pennies vs. fractions thereof. Depends on the trading style.

Don