But if I'm getting taken on the offer, then somebody is buying my shares from me. And isn't that Taking away from the market if somebody is taking my shares out of the market? They said they charge me .03 cents for taking from the market. They didn't say they give me a .03 rebate, but they said they charge me. They said I get the rebate when I buy into the market, or add Liquid to the market ??
YOU get paid if you offer and get taken, or BID and get hit PERIOD, nothing more nothing less. It's really not that complicated!
What about the "wash trade" rule. Isn't it illegal to take both sides of the market? Buy them and sell them at the same price?
Just adding one thing: The ECN pays you 2/10s of a cent per share of liquidity you added. You pay the ECN 3/10s of a cent per share, for liquidity you took.
On 10,000 shares is $25 rebate, $27 charge... or something around there... Rebate traders usually go for stocks like JDSU, SUNW or SIRI that move huge volumes and are worth very little per share... but be carefull with this markets, start small, if you throw ten k shares at them they´ll eat you alive. To be a succesfull rebate trader you have to be very fast with your fingers... is all about being first in line... and be willing to accept the fact that you win cents and losse dollars...
i thought the rebate game was over for nyse? inet used to give a .007 credit for taking liquidity on nyse stocks. now they give you nothing for adding and charge you .007 for taking.
That's what I was thinking, so if "We Pay" 3/10s of a cent per share for taking liquidity away from the market, then we are losinig and not winning because they are charging us money and not giving us money. ECN GIVES or PAYS US 2/10s but then they TAKE OR CHARGE US 3/10s. So how do we come out ahead?
Well, rebate trading would be the collection of rebates, so therefore you dont hit quotes, and only add liquidity. IE. Gives or pays us 2/10's and then gives or pays us 2/10s on the other side. No hitting quotes involved. This is why i questioned why you thought rebate trading was illegal in another thread, because there is nothing wrong with adding liquidity all the time, its just gay in my opnion.