which order type is faster, market order or limit order?

Discussion in 'Order Execution' started by emk662, Mar 21, 2019.

  1. emk662

    emk662

    Generally which order type is filled faster using IB for Nasdaq stocks? Market order or marketable limit order? Thanks.
     
  2. JSOP

    JSOP

    Market order of course but you will experience potentially large slippages especially if the security is not that widely traded.
     
  3. emk662

    emk662

    thanks. i forgot to mention that it is for liquid stocks.
     
    murray t turtle likes this.
  4. JSOP

    JSOP

    That's gonna depend on how marketable your limit order is then. If it's immediately marketable, then your limit order should be filled pretty much as quickly as a market order.
     
    murray t turtle likes this.
  5. 2rosy

    2rosy

    I say the limit order is filled first. It is already at the exchange and in the queue. so if you send a market it needs to travel. this is why some people will use stop limit orders to get into positions.
     
  6. mbondy

    mbondy

    There's no difference between the two, they're both marketable orders. In both cases you will be filled immediately.

    A stop limit is something entirely different and even if that were the case, the market order will be filled first.
     
  7. qlai

    qlai

    This question cannot be answered definitively in the context of IB (or even in the context of individual exchange).
    I don't think you want to be sending market orders to IB as the higher the latency, the worse the slippage you may get. The question to ask yourself ... Am I (strategy) better off with bad fills or no fills at all? What will you (strategy) do when your limit order doesn't fill?
     
    murray t turtle and cornerstone like this.
  8. They should both execute immediately. I trade via an API on Nasdaq stocks. I use Tradier and not IB, but do not think that matters
     
    murray t turtle likes this.
  9. emk662

    emk662

    hi, how long does it take to execute an nasdaq order?
     
  10. 2rosy

    2rosy

    so a stop limit that becomes marketable will be filled after a market order arrives? doesn't make sense to me
     
    #10     Mar 22, 2019