From past observations in which you disagree with posters, I think I'll make this my last response to you. You're apparently never wrong, never humble, and could care less. This essentially makes you irrelevant, unfortunately.
One question. You say what keeps the HFT guys in business is the liquidity rebate checks. According to your example wouldn't both sides of the trade qualify as non eligible take liquidity trades? Since both trades are immediately executable (offering price improvement over bid) and hitting the ask. So I don't understand how a HFT would make money on such a transaction. It would be a net loser in commissions, and the 1/100th of a penny per share loss.
The best part about this thread is that the real traders here, the ones that DO get affected by this sub-pennying disadvantage, actually GET what is being said about why getting sub-pennied is such a disadvantage... those that think it doesn't matter, are quite frankly, clueless, and it is nice to see how obvious their lack of understanding is. g p.s. I will try to make this really simple here... the biggest problem with getting sub pennied is not the miniscule fractions of a cent that you are losing, it is the fact that you CANNOT GET FILLED when you are at the BID. PERIOD. Let's say you are trying to soak up a huge order of shares as people are capitulating... Let's say the orderbook has 1.10 X 1.11 up. Now, you would obviously want to put a bid of 1.10 in, to buy up all those panicked shares. HOWEVER, the moment you put in a limit buy order in at 1.10, you IMMEDIATELY get subpennied and someone steps in front of you, to bid 1.1001. This means that you NEVER are on the bid, so you NEVER will soak up that panicked selling volume that you want. Even worse, you cannot buy at the ASK, because, these panic sellers do not just put up large limit sell orders, to be filled at the ASK, those sellers just hit the bid. So that means that you cannot ever get on the bid, AND you cannot ever buy at the ask, since those large numbers of shares are never even on the ask. So you have to take a massive hit (jump up several percent, sometimes) to get shares.
Registered: May 2010 lol - to each their own. Nice job btw nearly copying my statement from a few days prior. edit: and this is not a shitload of posts. 10k+ is a shitload... 2-3 posts/day is not a shitload.
lol - nice red hearing making up some bs about how I never think I'm wrong. Even though you're a moderator you apparently don't know how to search. You can go back a few years and see how I've talked about some losses of mine at-length. I'm frequently wrong though as I've gained more experience I've learned to talk less and listen more, which means I'm not wrong as often.
Since I appear to be in the "other" camp I guess I'll respond. I get what you're saying, but I honestly don't run into this issue. Why don't you send the order to another ECN? The sub-pennying happens before NBBO, so if you're consistently getting screwed get another broker.
It doesn't matter WHERE you send your order, as it is a whole penny order, and when it appears, no matter where it comes from, it IMMEDIATELY gets sub pennied to not be the best bid anymore. As a result, you can never be on the bid to get shares. And that is a huge disadvantage. Hopefully it is clear that it is not the PENNY or SUBPENNY difference that matters in the ultimate execution price, but it is the ABILITY to get shares at all... g
You should listen now. Subpenny front running hurts in 2 ways. Not getting filled on limits. Being force to take away liquidity. I dont know why you cant get that through your head.
Are you scalping? Don't get me wrong, I see this on the tape everyday but it doesn't affect my trading. When I want shares the ask always comes through my bid even when a sub-penny order prints.