Not sure what to do, any help appreciated

Discussion in 'Order Execution' started by allstarmoney, Feb 12, 2006.

  1. I am a current IB user and I get picks late Friday night from the system that gives me picks which I usually hold for a month or so. It seems as if my slippage on Mondays is going through the roof, maybe on account of other people following the same picks. Is it worth it to consider premarket trading? What's the best way to go about trading premarket? If I buy at the open on Monday morning, any ideas on the best way to route the order?

    On another note, I've noticed that IB doesn't let you place orders until Sunday night. Is it better to get your market order early versus later when it comes to IB? Should I use a better broker?

    Sorry for all these questions, but I'm trying to learn how this all works. I really appreciate any help you can provide.
  2. use lmt orders and the prob will disappear; it's not a good idea to use mkt orders during extended hours because most of the times u'll get horrendous fills.
  3. thanks bitstream. if i place a limit order, is smart the best way to send the order? is it worth placing limit orders in pre-market monday morning to get a better fill? does it make a big difference if i place the limit order right away on saturday morning versus sunday night?
  4. It really won't make any difference since you're holding them for a month or so. Use limit orders, that way you don't care when they get filled, the important thing is that they get filled at the price you're willing to pay.

  5. Yes, it's a good idea to use smart; but u have to use lmt on open or auction if u place orders on premkt and want to get the best price at open, of course with lmt on open fills are not guaranteed.
    Don't think makes much of a diff to place them on sunday night or on sat morning.
  6. thanks guys. what percentage of the time do you find that you usually get filled with a limit order premarket? also, with ib, does the order automatically convert to a limit order upon the market's open? thanks again.
  7. Percentage of fills will depend on how aggressively you price your limit order, If you wanna guarantee getting filled, you could alternatively use a Market-on-open order to get the official opening price, regardless of what that price is.

    i dont know about NYSE, but on NASDAQ if you route a DAY LIMIT order to Supermontage, the order should "automatically convert to a limit order upon the market's open" if its not filled on the open. Thats what NASDAQ told me anyway.
  8. how does a limit order differ from a limit-on-open order? i think the limit-on-open order cancels out soon after the open, but is there a distinct advantage in placing one? does a straight up limit order not go into effect right at the open? thanks much.
  9. no it doesn't: only lmt or mkt on open or auction do go into effect right at open.
  10. thanks bitstream. presuming i'm buying and i set my limit-to-open order too low, does it cancel a minute or so after the open or does it take longer?
    #10     Feb 12, 2006