Will Credit Trading Last and What May Kill It?

Discussion in 'Prop Firms' started by Rock and Ice, Feb 9, 2008.

  1. I remember some guys on here saying the credit trading done by a number of prop traders may come to an end, and end to the strategy.

    Does anyone know why exactly this may happen?

    To recap - this refers to the credit and debit to the trader from the ECN per number of lots.

    Or am I out of touch, and is it dead already?
  2. ECNs will continue to offer rebates to encourage liquidity being added.
  3. Still alive and wel, but not really worth the effort by most traders. I do use it for many of my "park on ARCA" trades intraday. Adds maybe $500 - $2000 per month, but is also a bit risky, and cannot be used for hidden liquidity pool routing which pays full pennies vs. fractions thereof. Depends on the trading style.