TradeStation Help

Placing Add Liquidity Orders

This option allows you to place orders that will only add liquidity on the route you selected. This type of order is useful in controlling your execution costs by avoiding fees the Exchanges can charge for removing liquidity from the Exchange.

This Advanced setting is available only with specific Equities order routes.

1. From the Order Bar, click Advanced.
2. Select the route (only Exchanges support this setting).
3. Place a check mark next to Add Liquidity. (Book Only must also be checked).

Specific Exchange behavior for Add Liquidity Orders:

Nasdaq:

• If, upon entry, a Post-Only order would lock a resting order on the book, the incoming order will post at one minimum price variation away from the locking price.
• If the Post-Only order would lock or cross a protected quote of another market center, the Post-Only order will be processed in the same manner as a Price-to-Comply order.
• If the Post-Only order would cross another order already on the book such that the difference in price between the incoming Post-Only order and the resting order cross is greater than the forgone net rebate (i.e., rebate - fee), then the Post-Only logic is not applicable and the order will be processed as if it were an Immediate or Cancel order at the best price.

NasdaqBX:

• All behavior as described for Nasdaq is applicable.
• Post-Only for Nasdaq BX is only applicable for stocks under $1.

BATS/BATS Y (BYX):

• An order will be rejected rather than remove visible liquidity unless the value of the price improvement associated with the execution equals or exceeds the sum of fees charged for the execution plus the value of the rebate that would have been provided if the order posted to the BATS/BYX book and provided liquidity.

ARCA:

• Add Liquidity Only (ALO) Orders will be rejected at the time of entry if any of the following are true:
  • The ALO is marketable,
  • The ALO will lock or cross the market, or
  • The ALO order would interact with un-displayed orders on NYSE Arca.

EDGX/EDGA

• Unlike the other exchanges, EDGX and EDGA will not reject or treat it as an IOC if the order is marketable or will lock or cross the market.
• EDGX/EDGA will adjust the price of the incoming limit order to prevent the order from taking liquidity. It will adjust it to the best bid/ask.