When to use Market/Limit orders NYSE

Discussion in 'Retail Brokers' started by limbo, Jul 22, 2001.

  1. limbo


    Can experienced NYSE traders please comment on why and when they use limit or mkt orders. And what situations might prompt the usage of such. Specific strategies using limit orders---buying- selling-offering out etc. will be much appreciated. Thanks.
  2. There are so many exceptions it is really difficult. I use them a lot to show fake size mainly. Lots of times, if I'm not sure what the specialist is doin, I'll put a 20k bid a dime under the bid. If he runs it, he's afraid i'll up my bid. If he drops the bid cause that's good size to sell to and ruin his picture, I'll pull it fast. I'm gonna always be faster than him.
    As for buying/selling, Lots of times, i'll send in a 10k market sell order, and he'll drop the bid and print me a half point lower. Now if say the bid is .4, I'll just enter 10k at .3 and get filled for as many as he will do me for and then cancell. Marker orders are better on more liquid names. If I'm doin amd for instance, I know that I can do 10k a nickle - a dime in either direction. I don't care about that type of slippage, so I just go market cause I want to get filled. I mainly do limit to get in, and market to get out, cause when I want out, I want out. Say I have 8k amd and the quote is 1k each way .89 X .95. I know I can sell 8k market at .8-.85, or I can offer .94 and get filled a bit at a time. I can also go .97 and hope someone takes up the offer. It depends on the futs. Say they are strong sometimes, I'll buy 2k just to move the inside quote up a nickle to sell them on the offer. It all depends on the situation. There are so many variables (mainly liquidity) that it depends. The final rule is position size. If I have 2k, I don't care. Even a quarter point slippage doesn't really matter. I just go market so I can move onto the next position and close that l2 box. If I have 10k, I "care" and try my hardest to get a good fill. You also have to know the specialist. I was once filled on 2k pki 2.5 points below market. I set the low for almost a week. I will never again trade that stock using market orders. It depends on the stock and what he's doin. If he's just moved it a lot, you can expect the market to be less firm, so you just use limit orders below the market to sell. Put it 10-20c below market and sell.
  3. limbo


    Thanks Prae2-This is exactly the stuff I'm interested in--Strongly hoping others will add their best methods too. Thanks.