question from equities noob

Discussion in 'Trading' started by vox_lucidus, May 12, 2004.

  1. my background is entrley in fx........i have a question regarding equities mkts......what are credits/rebates, and how do they work????
  2. Ebo


    Rebate traders are paid for "adding liquidity" to an ECN.
    If you get hit on the bid or taken on your offer you get paid a small percentage. If you take liquidity from certain ECNs you pay a commission. Some brokers pass on these fees/rebates to the customer while some do not! In my opinion, this is perhaps the slimiest way to make a living, but some guys still do it.
  3. pardon my ignorance please
    if u make a bid or offer on your shares and someone hits them u get the percentage?????
    how much is the percentage typically?
    why is it slimey.....????
    if i understand correctly.....this is what i would functionally equate with placing an entry order and getting filled....would u say this is an accurate comparison....???
  4. Ebo


    Here is an example of Instinet's Rebate schedule.

    Rebate per executed share of $.0020 for trades that add liquidity to the INET book.

    Charge per executed share of $.0030 for trades that remove liquidity from the INET book.
  5. do most prop shops pass that on to you???
  6. Ebo


    Some do, but not all.