Is paying commission a bit of a rip off?

[Rossini]

Lets say for the sake of argument that your paying $20 per side per million. If you buy a million and then exit (profit or not) you pay $40. Fair enough, that's how things are. But If you buy a million then scale out, exit in 10ths (one lot at a time) then that's more 'work' for the ecn to do? And therefore shouldn't that cost more? Or entering/exiting in full sizes cost less?



Just wondering what other views are?



R

 

[arabianights]

The real electronic work is indeed in taking lots of different orders (not really whether they match or not)... consequently some exchanges will charge you for doing lots and lots of orders without ever actually trading 🙂

Clearing the trades... yeah, you've got a point actually.