Chances to Improve getting filled on limit orders

Discussion in 'Order Execution' started by ProgrammerGuy, Aug 29, 2007.

  1. Okay what conditions are present where your fills on limit orders are fillied more often. Limit orders are buys on the current bid and sells on the current ask.

  2. If you place your buys on the bid good luck getting filled. You can't be a cheapskate and expect to get filled.
  3. You can always get filled.

    There is always a balance between getting filled and paying up. It's up to you as a trader to study the supply/demand of the instruments you trade and find that balance yourself. You can always get filled on your limit orders - how much do you have to cross up, how badly will you get plugged if you are wrong and want out immediately and have your liquidity taken, etc. are all up to you to study. You study it by trading 100 shares and watching how your order interacts with the LII, open book, and prints and learning from your mistakes.
  4. Confirmation of the have a better chance of being filled in volatile and/or liquid markets.
  5. Not the correct assumption "Limit orders are buys on the current bid and sells on the current ask." Limit orders are just that, an order to buy or sell with a specific price attached. When we start to see a big move, and "must have" the stock, we enter bids higher than the NYSE offer, knowing that we will likely get the offer price anyway, but never anything higher than our bid price.

    If you're referring to trying to make money on the bid/ask spread, well you might re-think that, not going to work in your favor. You might very well buy on the bid, but then the bid may go down a dime, and take the offer with it.

    Even market makers rarely get filled on both sides of the bid/ask spread.

    edit: Please check your PM, thanks.