A good book (limit vs market)

Quote from ProgrammerGuy:

RedInk

I completely take back everything I have said. I never knew that. Thank you very much for pointing that out. I'll have to look into that.

I will full say now that I'm the idiot
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No worries, hope it helps. :) Just make sure you have routing enabled.
 
i dont remember the last time i got a price improvement on a limit order routed NYSE


Quote from RiceRocket:

If you don't use limit orders, you will never get price improvement from the specialist or market maker. If you're trading for a living, every cent counts. The .02-.10 cent price improvements can add up to thousands of dollars over a year's time.

If you trade with market orders, you're not only leaving money on the table, but giving the market makers the right to take full advantage of your order to their advantage.
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Of course the spread crossing nature of a market order leads to statistical losses. For that reason high frequent traders that are trading with market orders are fast out of the game. The Provider of liquidity gets a kind of statistical risk premium. Limit orders are liquidity providing.
 
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