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

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

  1. mbondy

    mbondy

    Stop limits are not marketable, they're limit orders. When the stop (trigger price) is hit, the order triggers a limit order. Your original question was about marketable limit orders which is something different.
    Anyway, a market order will always execute faster and more reliably as it is always immediately executable.
     
    #11     Mar 22, 2019
    Overnight and murray t turtle like this.
  2. RDK91

    RDK91

    The solution i use (however this is for futures) is a limit buy order on the current ask.

    This way my limit order will buy in to the current ask and if there aren't enough contracts at the current ask price the remaining of my order will be the first in cue at the new bid.

    This guarantees a fast execution on the current ask but prevents large slippage if the market moves very fast.
     
    #12     Mar 22, 2019
  3. qlai

    qlai

    This assumes that your quote is very current and your submission is fast. If the Ask moves up, your order will be too far away to fill and may not even be BestBid.
     
    #13     Mar 22, 2019
    digitalnomad likes this.
  4. Any marketable limit sent above ask gets filled at ask, per US exchange rules. If you’re trying to snapshot the ask price at a specific time, and then send limit order at that price, then I guess that makes sense, but you might be left in the dust in a fast moving market, even index futures.
     
    #14     Mar 22, 2019
  5. My thoughts exactly. Check your PM. I have some microstructure questions I’d like your opinion on.
     
    #15     Mar 22, 2019
  6. RDK91

    RDK91

    Indeed you might be left out but it is a good way to avoid slippage.
     
    #16     Mar 22, 2019
    murray t turtle likes this.
  7. %%
    Buy it on bid, very liquid stocks, worked fine today;
    or use a market order, very liquid stocks.5 million or 50 million average day volume helps; chart level study may help. One million day volume could get in trouble/entry/exit , both ways; but not very often:cool::cool:[Edit ; stocks priced >> $5.00]
     
    #17     Apr 8, 2019
  8. Mellov

    Mellov

    Forexchief broker executes via market order, and o boy the speed is great. It is faster. I think slippages are more associated with limit orders from my experience.
     
    #18     Apr 16, 2019
  9. Andras

    Andras

    You can't compare that speed to other execution types. It is usually fast.
     
    #19     Apr 21, 2019