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yes but do they have to clear all the trades or just at the end of a session ? I was under the impression that you could pool your holdings and clear them once
by dkhenry 13y ago
yes but do they have to clear all the trades or just at the end of a session ? I was under the impression that you could pool your holdings and clear them once instead of for each individual trade.
Also I thought exchanges charge for access not for activity. So Its a fixed fee to be able to talk to the exchange,but I can send in as many orders as I want.
- AndrewBissell 13y agoMost exchanges now charge on a "maker/taker" basis, where liquidity-taking trades (lifting an offer or hitting a bid) are assessed a fee, while liquidity-providing trades (working a bid or offer which is ultimately filled) are paid a small rebate.
- dkhenry 13y agoSo that's the exchange side, what about the clearing. As I understand it that's where the bulk of the cost comes from.
- kolbe 13y agoYou can't aggregate the clearing fee away. It's applied to every trade. And clearing fees are small compared to exchange fees anyway. There are some fixed fees to be designated as a market maker on some exchanges. Others just charge based on a free-for-all maker/taker model. Another "fee" that market makers incur that retail customer don't is direct market data, which is painfully expensive. But that's fixed, not a function of trades.