Ticks, Lots, Fees, and Rebates
Price grids, quantity increments, minimum values, fees, and rebates change both valid orders and the economics of apparently identical trades.
Central questions
- How does tick size constrain spreads and queue competition?
- Which explicit costs differ for adding and removing liquidity?
- When do rebates change behavior without changing gross prices?
Planned model
Adjust tick size, lot size, taker fee, and maker rebate while participants choose prices. Show effective spread, queue length, and net execution cost.