What are Liquidity traders doing?

Discussion in 'Trading' started by cornholetrading, Jan 9, 2003.

  1. I know awhile back there were many threads on liquidity traders and lots of offices popping up to offer this service. I wanted to see if any liquidity traders are still around now that supermontage has been implemented, ECN rebate prices have fallen, and many stocks did reverse splits. If you are still around how has trading changed for you and how have your results changed at all? I hope this thread does not turn into a liquidity trader bashing thread. I have never traded this way but knew of a few people that were putting up good money trading this way several months ago so there should not be anything to bash as long as you were making money.
  2. Seemed like a scam to me then, and I assume (dangerous) that the game is over and they had to go back to torturing small animals and NYSE specs.
  3. Actually I thought poorly of liquidity traders too, didn't think they made real money. But after talking to one, and seeing what he does, I gained a new respect for them. My personality would never be able to handle the constant in and out of liquidity trading, but there is money to be made. Just like everything else, it takes time to get good at it, and develop the proper feel.
  4. I am kind of surprised by the lack of response seeing as a few months ago there were several traders posting about liquidity trading. Maybe the lack of response is a telling sign of that style of trading at the moment.
  5. I used to liquidity trade, but it has gotten so difficut I quit. I used attn and the ecn just lock or cross me so I cant get out to get the rebate.

    i gave it up last month
  6. Do you think you had the same problems as many liquidity traders in your office, assuming you were not trading from home? Do you know of people still trading that one or did they have to adapt to the changing environment or reverse split and lower ECN pricing?
  7. the ones that I know say that supermontage ruined it.
  8. rs7


    spoke with a guy I used to work with that works with NXTD now...he said he's doing ok, but is really trading for p&l now. He also said that of the 20 or so traders in his office, only a handful were making money. Don't know how the other traders are trading.

    Still seems almost impossible to me to be so right if you are trying to make it just with adding liquidity. Also, seems like quite a grind. I walked into the office once, and the tension was amazing....everyone glued to their screens watching stocks move in 1/10th of a cent? Looked like torture to me.

  9. too many people realized the game so it's no longer any good
  10. Correct me if I'm wrong , but wasn't the whole thing based on extorting a fee from unwilling participants? (ie. MM's and brokers obligated to trade at the inside).

    Unhealthly, even if profitable for the extorter.
    #10     Jan 11, 2003