Is going after the rebate in ECNs worth it for a directional trader?

Discussion in 'Order Execution' started by monty21, Jul 12, 2008.

Should I go after the rebate that ECNs give or just do market orders in a fast stock?

  1. Yes

    2 vote(s)
  2. No

    4 vote(s)
  3. Unsure

    0 vote(s)
  4. Depends on circumstances not noted in this thread

    0 vote(s)
  1. Yes or No?

    I daytrade but am not a scalper. I like to ride positions that are in play. Should I worry about getting the $2 dollar rebate from ECNs when I want to get out or should I just use market orders. I've been using the market orders all the time just to get a fill and get out. I lose the $2 rebate by doing this though and am now questioning whether I should just offer/bid depending on the side and make the market for those 2 bucks. I trade about 100,000 shares a day.

    Has any one had any fill problems when trying to get the rebate? Is it worth it? You risk that the trade reverses quickly and you may not get out at all.

    Any suggestions would be greatly appreciated.
  2. I always try to get the rebate. You have a set exit target, so add to liquidity. If you shoot a market order to an ECN you'll probably have to pay the take liq fee.
    Of course you need to have an emergency exit too. So if you dont get target gotta have a stop at mkt too.
  3. If you are wrong get the fuck out. If you lose as little as .01 trying to save .005 (differenve between punching liquidity and getting filled passively) it's not worth it.

    If you have a profit target, or if you think your entry will get traded through, post and be patient. Otherwise sweep the books.
  4. I take the fuck out of liquidity :)
  5. yeah me too lol