Limit or Market Orders

Discussion in 'Strategy Development' started by gilvet, Nov 23, 2002.

  1. gilvet

    gilvet

    What will bring better results for Daytrading? :

    1. Limit Orders ( Sometimes will not get you in and will be out of your trading plan)

    or

    2. Market Orders (pay a few cents more, specially for large orders)


    Thanks for helping.
     
  2. :p
     
  3. I would not use a market order in stocks, options, pit traded futures ...
     
  4. If you use market orders it will bring better results for my Daytrading.
     
  5. bobcathy1

    bobcathy1 Guest

    If you are trading on momentum there is a school of thought that says market orders are better because you will get filled faster.
    It all depends on WHAT you are trading. I would put limits in thinly traded stocks.
     
  6. deepitm

    deepitm

    I trade index options. The spreads can be quite large. Limit orders are the only way to go in that environment.
     
  7. Magna

    Magna Administrator

    If you need to ask the question then you should use limit orders to protect yourself going in. For exits, if your software permits it place both a stop-market order to make sure you get out and a limit order as a target. Ideally (again, depending on your software), when one is triggered it will automatically cancel the other.
     
  8. Think about what each type of orders means.

    1) Market: I want to buy certain number of shares at whatever price. Is this how you buy other stuff in your life?

    2) Limit: I want to buy certain number of shares at a specified price. Is this how you buy other stuff in your life?

    Limit order guarantees you that it will be filled at or at better price then you ask for. Market could execute at any price, and you would not be able to argue with your broker about losing money on an order that for whatever reason did not reach the market at the time you placed it.
     
  9. tracedef

    tracedef Guest

    that was funny.
     
  10. using a limit order is trading against the trend..

    you are bound to miss all the big winner that make your year

    and you are bound to get slammed by the big loser that never

    come back...

    If you use a limit order....

    you might save a few tick of slippage...

    but you might a miss 30 point move...

    the risk/ reward is all wrong (for my way of trading)

    and

    trading is not like shopping in a supermarket..

    looking for a bargain is not always the best thing to do
     
    #10     Nov 24, 2002