Will Credit Trading Last and What May Kill It?

R

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?
 
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?
More...

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

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
 
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