Liquidity provider high frequency idea...

ok so MB trading allows retail traders to get paid a premium for limit orders when hit.

basically any non marketable orders will receive a premium.

for example:

eurusd bid/ask is 1.5000/1.5500

you place a limit buy at 1.50001, limit offer at 1.50002, if hit you net liquidity premium +profit in pips.

0.00001 *100 000 = 1$

so if you are hit you net 2.95$ on the trade.

if the price drops, you still enter a limit order to sell.

bid/ask falls to 1.49999/1.50039

you place your ask at 1.50000, and if hit your net profit is 0.95$ ($1.00 loss (0.00001 pip) +1.95$ premium).

as price is almost always moving, you can do this several hundred times a day. Need to take into account that you may not be hit, which could result in a much larger loss...so testing needs to be done.


anyone good at programming?? :)