Are mkt orders 'safe' w/ IB?

Discussion in 'Interactive Brokers' started by arzoo, Oct 24, 2002.

  1. arzoo


    Is it advisable to use market orders with ib? or just like most other brokers, at least the ones I tried, putting market orders will certainly give you a price way off from the best bid or offer u see on screen.

  2. def

    def Sponsor

    A market order to buy sent via IB (or any broker for that matter) will most likely get you a fill on the offer in the market. From time to time you might get price improvement by:
    a: dumb luck > your offer reaches the exchange a fraction of a second before an order with a lower price gets there
    b: The TMBR route for stocks has a better internal price;
    c: Your order reaches the NYSE specialist who gives a better fill for any number of reasons.

    Personally, I avoid market orders and wouldn't ever consider using them unless the market in question is very liquid.
  3. richk


    I heard that market order for futures are well done by IB, but for stocks I do not recommend it generally (too risky in every broker).
  4. I use 90% market orders at IB. Few complaints.
  5. All market orders must be entered with caution. You are at the mercy of the specialist.
  6. mdmbud


    I use market orders for stocks, but not futures...