Opening Orders Are They Any Better?

jayjay121 · Apr 4, 2012

thanks for your replies.

gmst · Apr 4, 2012

Quote from jayjay121:

thanks for your patience.

so why do traders use opening orders when they could use limit orders instead and have a better fill rate?............a opening order will cancel after the opening print where as a limit order will not. Opening order type traders often complain about their fill rate, wouldn't they achieve a better fill rate with limit orders?. Price will often retrace to our price after the first couple of mins to achieve a fill. Opening order traders say their edge is because they get a ineffiency in price at the open, but open is often the most volatile time of the day and id say the first 5 mins can be inefficient, not just the opening print.

what do you think?
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I don't have much experience with stocks but I often wondered about this thing. Maybe ask Don Bright - he is a guru of opening only orders. He can explain the strategy better than most.

Shadetree42 · Apr 14, 2012

There are times when you think a stock will move a certain direction right after the open. In these cases, on-open orders are desirable. The alternative (regular limit order) leaves you exposed to a stock running through your order.

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Opening Orders Are They Any Better?

jayjay121

gmst

Shadetree42