Is it worth changing order types to use Rebates (via BATS for eg)?

Discussion in 'Order Execution' started by Iggy_Type_R, Jun 14, 2011.

  1. Hi,

    I currently execute all orders as MKT orders (I care more about timing than price) on fairly short holding periods (count in mins/hours).

    I've been reading about rebates by adding liquidity via someone like BATS but am struggling to really understand how I could change my orders to take advantage of rebates?

    Can anyone share some thoughts?

    As I said, all current orders are MKT ... they get filled very quickly, which is very important to me. Will I lose the speed if I start sending LMT orders? In theory I take it it will... for me seconds count, not milliseconds if that makes any difference?

    Thank you in advance!

  2. Only way to get rebates AFAIK is to provide liquidity. Meaning strictly limit orders and yes you might not get filled sometimes.

  3. If try to send in limit orders to add liquidity to BATS... what's going to happen is, you'll realize you only get filled when it goes against you and not getting filled when it goes it your direction.

    For you what you're doing just stick it market orders. Use your brokers SMART router, and if they don't have one, I'd say default route to BYX
  4. Thank you for the replies! I appreciate it :)

    I will stick to MKT orders, it's not worth cutting the commission while cutting profits ;)