If you are trading hundred lots then there should not be a problem is you are going to the exchange on the offer. But there is a reason why there is a ton of code written to attempt to spray the ask and a ton of counter code to move the ask to capture a cent or two from the market order.
Why? Manipulation, most likely. Just accept that that's the way it is. Always assume negative slippage. Sometimes you get none, and sometimes it goes in your favor, but never count on either of those two things happening. In all simulations and estimates, always assume slippage will be negative.
Some bucket shops use slippage infliction software , u get filled at one price ,the market is a different price.
You don't seem to understand the question. Rehoboth offered some good insight, check his post out. Or, if you're interested in spewing lame, cliche trading mantras to people you perceive as novices, feel free to check out any of the posts from Mav88.
No,i perceive you as a very experienced,who`s wondering about the slippage at market and found an 'insight' in the word 'spray'.Keep bying at market,dude.
When you enter positions at random, favorable and unfavorable slippage is indeed evenly distributed, assuming that the broker is honest. However, you're normally entering a trade in the direction you assume that the prices are likely to go. Slippage then works against you, as your order is filled at a slightly higher price on a long trade, or a lower price on a short trade. For exiting, it's the opposite mechanism. The better your strategy trades, the worse is the damage by slippage. ps - I also noticed that there are several trolls on the ET forum.
A market order gets filled against a limit order resting in the book. At the time you submit your order to buy 100 shares at market, let's say the ask is 10.00 (Philippine Pesos). Let's also say there are resting limit orders to sell 1000 shares at this price. If no other market orders arrive between the time you submit your order and the time your order is matched with the book, you'll get filled for 100 shares at 10.00. However, assume other traders saw the same signal you did and that some of them are closer to the exchange (or just quicker) than you. If their orders sum to greater than 1000 shares, you won't get filled at 10.00, but at a worse price (i.e. at a higher level where there are still resting limit orders). This is what will happen most of the time... If you are lucky, the market will move down before your order is matched, and then you'll get a better fill than you expected. But this will not happen often compared to the situation described above ...
If the market is bid 40.00, ask 40.01 and: you buy with a market order, you pay 40.01 at the ask. you sell with a market order, you receive 40.00 at the bid. Net: - 0.01 Don't over think things.