placing an order when the markets are volatile

Discussion in 'Options' started by met1989, Feb 25, 2020.

  1. met1989

    met1989

    Why is it so hard to place a spread when the market are crashing no price seems to be excuted ?
     
  2. Use Market Order
     
  3. met1989

    met1989

    and get filled with a huge debit no thanks
     

    • An unfilled Limit Order will cost you more than a Market Order.
    • It's a myth that Market Orders are filled at unfair prices - I use them all the time.
     
  4. SanMiguel

    SanMiguel

    The spread will be widest during a time like this, you'll get the worst price using a market order but you will get filled of course
     
    • Not necessarily.
    • I have never had a Market Orders filled at a worst price than the current bid/ask.
     
  5. Dustin

    Dustin

    Options mm's pull their algo's when trading gets volatile so fills can be tough to come by.
     
  6. SanMiguel

    SanMiguel

    I didn't mean a worse price than the current bid ask. I meant that the spread may normally be 1.05/1.1 yet when is volatile the spread may be 0.9/1.3
    So, you buy at 1.3, you're paying 20% more than you normally would.
    Things may settle the next day or with less volatility.