Re:Math Whiz Trades Without Humans
by notavalleyman on Saturday December 07, 2019 @11:19AM
(#21731014)
This is a result of the common Maker/Taker pricing model. [1]
Those who "make" liquidity by publicly quoting ask/bids are rebated fractions of a cent when their orders are filled, and those who "take" liquidity by exercising the Maker's position are charged.
This is separate to the spreads. The book Flash Boys has a very good explanation of the model.
Those who "make" liquidity by publicly quoting ask/bids are rebated fractions of a cent when their orders are filled, and those who "take" liquidity by exercising the Maker's position are charged.
This is separate to the spreads. The book Flash Boys has a very good explanation of the model.
[1] https://www.investopedia.com/articles/active-trading/042414/...