medium · Market Microstructure mmf-core
A stock is quoted at $50.00 bid and $50.01 ask on Exchange A, which offers a $0.002 maker rebate and charges a $0.003 taker fee. Exchange B quotes the same bid/ask but charges a flat $0.001 fee per side.
Where should a market buy order be sent for the best net price?
- Exchange A
- Neither, as the spread is too narrow to matter.
- Exchange B
- Both offer the same net price.
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