The rebate game is not one for just the rebate. Each ECN has its own standard which it pays based on a PER PRINT basis. ARCA is about 50 cents per print. So if you are doing 100,000 shares on 500 share prints, .002 is $200.00, but the print revenue is 200 prints x's .50, another $100.00. The kicker is that the firm handling the transactions never tell you about the per print revenue, but make you do 500 share lots. Most guys I know doing it do 300000to 400,000 shares a day. So if you are flat on the day p/l and you did 400,000 shares = 1,200.00/day. Not a bad living. My problem doing it was you always have to be on the wrong side of the market to get filled. Can't get hit on the bid when the stock is ripping up. O well, my 2 cents Bandit
So was it even profitable in the recent years? It sounds like it was an ok living unless you were actually a good trader at the same time.
It was a great living if you were a good trader, because you could have a positive P/L AND make 1K or better on rebates. I am telling you, it was just a pain in the but. It felt WAY too much like work. Lunch was the best time, low volitility, and on a stock like SUNW or on the SPY, or QQQ....Work all the time. Bandit
Some made killer coin on rebates where I used to work. I think one guy made 20K one day in rebates. My best is $3700. That was back on WCOM when it did a billion shares in a day. It's no substitute for good old fashioned gross profit, but it's a nice way to cover your costs for the day. I'd be sad to see it go. Regards, Warren
grimmer, you need to grow up. Trading is not just charts, volume, ways to buy and sell.....it is a LIVING. If you don't make the money, you go work at McDonalds (which is obvious you know this). Real traders make money, they don't make excesses. If it takes liquidity trading to put bread on the table, so be it. Atleast you are still in the game. After 14 years in this business, I have seen it all. As long as what you are doing is legal, and you are getting paid for it, it is better than the 9 to 5 any day. I have not Liquidity traded in over a year, but for the lull in 01 to 02, I made great jack doing it. Bandit
Does anyone really know the actual interpretation of the new proposals? Does this definately kill rebate trading? I read the proposal and frankly, I have a hard time understanding it. Thanks.
My interpritation goes something like max per share charge of .001, with a max per transaction charge of .002. We will see though. Bandit