Is this providing liquity

Discussion in 'Order Execution' started by Sky123987, Nov 16, 2007.

  1. Just wondering if this counts as providing liquity...

    I think it does but just want to check
    20.50 * 20.53

    you place a buy limit order @ 20.51
  2. mr19


    if your order is posted and someone takes it yes you would be providing liquidity. if you hit someone else's offer, perhaps because the market moved before you submitted the bid or there is a hidden offer parked there, you would be taking liquidity.

    I almost always try & provide liquidity but inevitably the above occurs about 10-12% of the time (using ARCA, BATS & INST).
  3. as long as you are not taking stock from someone else are providing liquidity ..

    doesn't matter what price you are bidding ... if someone sells to you are the provider ...

    on the sell side ...if someone buys from you matter what your offer price is are providing liquidity ..