Market vs. Limit Orders on Stocks

Discussion in 'Order Execution' started by xyannix, Jul 27, 2006.

  1. xyannix


    Do you use Market or Limit Orders?

    I only use Limit orders but was wondering when you would actually use a Market order?

    I find every time I use a market order it gets filled at the worst price.

  2. dac8555


    I use market orders all the way. I am not going to haggle over pennies, becuse if i do, i run the risk of not getting into the position.

    If i want is becuse I have done my homework and dermined the trade to be viable and potentially very pofitable. So i just get in.

    I Dont daytrade, and find one of the disadvantages to daytrading is the need to rely on execution to be profitable.

    Another thing is liquidity. If you are trading something that is liquid enough..the spread shouldnt kill stocks at least. options are another story.
  3. rjv27


    I use either NX to get in or market. There are many reasons why you would use a mkt order. To list a few:

    1. when you are trading more than a 1000 shs and there is a bid/offer to hit i nx 1000 and go mkt 1000 or 2000 shs.

    2. mkt orders have priority over limit orders, this is huge.

    3. stock spreads and the only way in is via mkt, specialist might just leave your order on the book.

    by the way I only trade listed stocks.

  4. Aok


    If there is size and tight spread, market.

    If not limit.