Are limit orders or market orders better when daytrading Futures.

Discussion in 'Index Futures' started by ceaser, May 11, 2022.

  1. ceaser

    ceaser

    Do you use a limit order or a market order when daytrading futures. Which is better? Do you use the default settings for each on Thinkorswim.
     
  2. maxinger

    maxinger

    most of my orders are market orders.
    most of the time, the market is moving rapidly.
    I must use the one-click market order in order to enter the trade immediately
    and without delay.
    Better to enter at a bad price rather than miss the trade.

    for a slow-moving market, I might use the limit order
    or stop order for entry
     
    NoahA, Leob, rb7 and 1 other person like this.
  3. virtusa

    virtusa

    Always market orders, because the damage by missing one is much bigger than the average "better" price of limit orders, in the long run.
    Market orders are always executed, limit orders not.
     
    tomorton, toucan and rb7 like this.
  4. Aisone

    Aisone

    If the market is quiet, nothing wrong with a limit order, but as fast as it can move at times, a market order can be more sensible then to ensure a fill. You may get a terrible fill, but that's because of the herky-jerky nature of fast futures markets. Limit orders have risks too. You can inadvertently forget about it. Also, the 'value' of something tends to change over time, so by the time it gets filled, it may not be nearly as attractive as it was when the order was placed.
     
  5. Exactly right!
     
    maxinger likes this.
  6. CannonTrading_Ilan

    CannonTrading_Ilan Sponsor

    For me it depends if it is entry or exit.

    When manually trading I use market orders or stops to get in ( if I am waiting for momentum). Exits I normally have limits or MIT ( market if touched).
    On some of the auto systems I have limits orders working but with a setting that if not filled in X seconds go to market.

    Also depends on which market...with NQ I normally enter and exit with market too fast....with bonds I try limits most of the time and try to gain that $31.50 tick size....

    More on the topic and others on our blog.
     
  7. ceaser

    ceaser

    Can you mix the orders say a limit order for the buy and a market for the sell.
     
  8. virtusa

    virtusa

    You can take a different order type for each entry or exit.
     
  9. Marketable Limit for me. Basically, a Market with protection.
     
  10. comagnum

    comagnum

    Using limit orders on futures day/night trades - I let price come to me. There is no right or wrong way - whatever works for you.
     
    #10     May 11, 2022
    CannonTrading_Ilan likes this.