Commission

This is a discussion on Commission within the First Steps forums, part of the Reception category; Hello All Just a basic question? And to clear things up. If a trading firm asks you to execute an ...

Reply
 
LinkBack Thread Tools Search this Thread
Old May 17, 2004, 1:12pm   #1
Joined May 2004
Commission

Hello All

Just a basic question? And to clear things up.

If a trading firm asks you to execute an order say. Sell FTSE future at 4350 and as a trader I was to sell it at 4340. Would I make 10 ticks as my commission? Also on the understand that the firm may have a contract to split any profits say 50%, 50% with me.

Marketmakers
marketmakers is offline   Reply With Quote
Old May 17, 2004, 1:28pm   #2
 
JonnyT's Avatar
Joined Dec 2001
You cannot do that!

You place an order in the market, the market gives you a fill etc etc.

Brokers just get commission.

JonnyT
__________________
Trading Mentor
JonnyT is offline   Reply With Quote
Old May 17, 2004, 2:22pm   #3
TWI
 
TWI's Avatar
Joined Jan 2004
Depends if you are an execution only broker or a broker dealer. The broker dealers work basis executing orders at better than given and keeps the spread. There are people making money on execution like this both from clients and in hedge funds where a system tells them to sell so many of x at a price in the next x minutes.
The disadvantage is that if, as a broker dealer, you miss the price yet the market has traded through there you have to honour the trade so you can take a hit by taking the additional risk.
__________________
"I refuse to tiptoe quietly through life
only to arrive safely at death"
TWI is offline   Reply With Quote
Old May 17, 2004, 3:25pm   #4
Joined May 2004
marketmakers started this thread Thanks Twalker
marketmakers is offline   Reply With Quote
Old May 17, 2004, 10:49pm   #5
BBB
 
BBB's Avatar
Joined Dec 2003
Also - thats how fx works. You trade at the brokers quote who will be a few pips outside the 'real' market. The pips he makes on top covers his risk of the 'real' market moving between filling you and covering his exposure.
BBB is offline   Reply With Quote
Old May 18, 2004, 10:41am   #6
Joined May 2004
marketmakers started this thread The broker dealers work basis executing orders at better than given and keeps the spread. There are people making money on execution like this both from clients and in hedge funds where a system tells them to sell so many of x at a price in the next x minutes.


Hello Twalker

Thanks for the reply

The position is for a hedge fund manager are they broker dealers? If I was to be clever and excute a sells order for them lower than the price the hedge fund wants to sell will I get the spread.

Thanks once again

Marketmakers
marketmakers is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Commission Kap Indices 39 Dec 29, 2003 9:07am
CTG and commission. peedee Psychology, Risk & Money Management 2 Nov 23, 2003 6:10pm
IB Commission osho67 Brokerages 2 Sep 30, 2003 6:57pm
two way commission genti Brokerages 2 Jun 11, 2003 10:18am
Commission of futures CityTrader Indices 13 Jun 10, 2003 6:41pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)