Rebate trading question please

Discussion in 'Strategy Building' started by kitty1996, Feb 10, 2008.

  1. I am new at this so please give your input if you know, thank a lot.

    REBATE TRADING... is that true your net P&L will be NEGATIVE, always?

    If so, how do you get paid if your "net P&L" is negative. I thought your salary is only based from "positive net P&L". Gorss can be positive but if "net P&L" is negative, you don't get paid.

    Am I wrong?

    thank you for all replies in advance.
     
  2. It is true that your net P/L will probably be negative if you're still trying to rebate trade in this day and age.
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    I think you're confusing gross with net, however. With rebate trading, in theory, your gross can be negative (i.e. you're actually losing money from the market, penny per share wise), but the rebates more than overcome that. However, I think a good rebate trader aims to be both gross and net positive.