Question regarding Mkt Order

Discussion in 'Strategy Development' started by chiefraven, Nov 20, 2005.

  1. Hello,

    I was wondering if anyone could explain why anyone would want to use Mkt order when there is NX buy and NX sell. For example, in what condition would a person need to use market order? Because i know that market order gurantee you that your order will be executed, but you might not get hte price you want. And also, the market order is placed for the specialist, and it's up to the specialist to decide when to execute the order for you. so why would anyone want to use marketorder instead of NX buy and NX sell, where you know what price you're getting or selling, and it's even faster than market order.
  2. Well for the most part given a choice most traders that trade often during the day use NX, however when you are trying to build a big position fast (say in a matter of seconds) you can only NX upto 1000 shares, after that you are required to wait (45 seconds or 1 min not really sure on that) so sending out market orders make sense. Also if you miss your NX say you were late or maybe some another reason your NX then becomes a limit, the stock can trade away from that price and your limit may never be filled hence the market order
  3. Actually the delay is 30 seconds but they're getting rid of it altogether when Reg NMS arrives next spring/summer. About time too. Can you imagine how brilliant the NYSE must be to alienate traders with such an asinine restriction in the age of millisecond trading?
  4. Sometimes, when you are experienced enough to really understand the situation, sending a market order will get you price improvement. Also, there are situatins where you cant nx out of and you immediately know that you are wrong so going market just gets you out.