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Learn About Routing Destinations and Liquidity Rebates in Lightspeed Trader in Our Webinar Recap

Once again, our own Rob Livson, VP of Business Development, hosted another informative webinar focusing on the benefits of choosing routing destinations and how to earn liquidity rebates in the Lightspeed Trader, our stock and option trading software. Active traders can take advantage of these features to increase the speed of their order execution and the likelihood that their order will be filled, while simultaneously lowering their trading costs by taking advantage of rebates.

Choosing Your Routing Destination

One of the advantages of the Lightspeed Trader platform is the ability to choose from a variety of market routing destinations. These options are available from the order entry window; however, it should be noted that some order types may only be available for certain market routes.

What is the “best” route? Unfortunately, there is no simple answer to that question. It depends upon a variety of factors, including how thick or thin the market happens to be trading at that moment for your desired equity. When in doubt, you can also choose the LSPT route for your order.

  • LSPT route – This is the name for Lightspeed Trading’s smart order route. It uses a proprietary algorithm which is designed to give you the best execution by rotating through different exchanges and routes. Compared to other smart routes, ours offers exceptionally fast executions.
  • Choose your route – Although there are many times in which the LSPT route would be advantageous, there are other times in which the best option may be to select your desired route. For example, if you see a security that is trading very thinly, but you notice that it is available on a specific exchange, you may want to route the order directly to that exchange to increase your chances of getting it filled.
  • LSPD Dark Assault route – This route allows you to trade in dark pools. Just select “DARK” from the order entry window. The Dark Assault route is most beneficial to traders who are trading larger volumes of securities.

Taking Advantage of Liquidity Rebates

If you haven’t been taking advantage of liquidity rebates, you might want to consider how you can use them to offset your costs. In the webinar, Livson reviewed the definition of liquidity, and how you can earn rebates while trading.
Put simply, one could think of liquidity as water in a bucket. If there is an order in the market, and you buy it at the offer or sell it at the bid, you are essentially taking liquidity, or removing water from the bucket. If, however, you are putting more shares into the market, or buying at the bid or lower or selling at the offer or higher, you are adding liquidity, or pouring more water into the bucket.

You can view available liquidity rebates for each route offered in the Lightspeed Trader platform by visiting our routing fees page. Items that are not marked with parentheses are eligible for a liquidity rebate. For example, if you routed an order to ARCA and added liquidity, you’d earn a rebate of $0.002 per share.

The webinar also reviewed some of the various customization options that are available in Lightspeed Trader. You can view the entire webinar here.

To learn more about the best trading tools for active traders, keep an eye out for our next webinar; or, download a demo of the Lightspeed Trader program for yourself today.

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