And since you are interested in how your trades are being executed, read about order routing as well, it’s a whole new universe. You know… trading is not just reading financial statements, you can upgrade on that and optimize what you are doing in many ways .
If it's not too much of a hassle for you can you share some info on that too, it would be very valuable?
There’s nothing that special about trading venues, either you pay for taking liquidity out or they pay you in rebates when you provide liquidity by sending passive orders….
Yes, true, but there’s a little more than that to it as well. You described the basics of adding and taking liquidity and on that level, when you know the parameters of your trading operations, you can adjust your trading costs(it depends on what edge you are exploiting, but generally it makes more sense when you are trading larger size, which if you are doing, you would already know these details.) But there are some other perks that add long term value to your trading, for example using dark routs and algo routs. There are some that seek midpoint execution(you don’t pay the full spread – that adds up after 100 trades...), there are some that give you price improvement by searching dark pool liquidity, other routs help you get in or out of a position faster, etc. I’m not a programmer myself, but basically they are developed to make trade-offs between a better price or a faster execution and when you test them in practice you will know what works best in which situation. For example, I use these - SMART, NHDO and WORK. Again, I haven’t even searched for what is the exact mathematical logic behind them, but when I trade stocks with questionable liquidity SMART executes me better. NHDO finds me liquidity when such is not present on the book(big spread, pre-market hours, crossing hidden orders) and WORK executes me slightly faster than all of them, but with a little slippage in price… At least that is what works for me and in my situation. Read more about this stuff and test in practice what you have available as tools. One should be doing this, especially if being in a drawdown. Trading is never stopping educating yourself. : )
Hey, man… thank you again! I really appreciate it! I am doing that, I have never stopped educating myself and it’s good that there are people that share their experience and knowledge for free.
No problem. Really, it’s nothing more than what you would find just googling around for this stuff. Wish you all the best.