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Research field guide

When maker rebates do not offset trading costs

A maker rebate reduces one fee component. It does not measure adverse selection, missed fills, price drift or the cost of changing inventory after execution.

A worked distinction

Receiving a 2-basis-point rebate on a 10,000 USD fill contributes 2 USD. If the effective execution benchmark is 8 USD worse, the rebate alone does not make the observed execution better than the benchmark.

What to verify in your own analysis

Use signed fees, consistent buy/sell conventions and a benchmark known at decision time. Separate a posted quote from a completed fill.

Write down the market or protocol identifier, units, observation window and data source before comparing outputs. Keep unavailable values distinct from zero. Capture a baseline and change one assumption at a time so the resulting difference can be explained.

Use the linked working tools

Open the related tools below to inspect actual public observations or calculate a local scenario. The numerical example above is illustrative, not a current quote. Export the result together with its assumptions if you need a reproducible research record.

The review checklist records what you checked in this tab. Completion measures your own notes, not whether an investment is safe, suitable or profitable.

Primary documentation

Research review record

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