Are limit orders or market orders better when daytrading Futures.

[ceaser]

Do you use a limit order or a market order when daytrading futures. Which is better? Do you use the default settings for each on Thinkorswim.

 

[maxinger]

most of my orders are market orders.
most of the time, the market is moving rapidly.
I must use the one-click market order in order to enter the trade immediately
and without delay.
Better to enter at a bad price rather than miss the trade.

for a slow-moving market, I might use the limit order
or stop order for entry

 

[virtusa]

Always market orders, because the damage by missing one is much bigger than the average "better" price of limit orders, in the long run.
Market orders are always executed, limit orders not.

 

[Aisone]

If the market is quiet, nothing wrong with a limit order, but as fast as it can move at times, a market order can be more sensible then to ensure a fill. You may get a terrible fill, but that's because of the herky-jerky nature of fast futures markets. Limit orders have risks too. You can inadvertently forget about it. Also, the 'value' of something tends to change over time, so by the time it gets filled, it may not be nearly as attractive as it was when the order was placed.

 

[Scataphagos]

most of my orders are market orders.
most of the time, the market is moving rapidly.
I must use the one-click market order in order to enter the trade immediately
and without delay.
Better to enter at a bad price rather than miss the trade.

for a slow-moving market, I might use the limit order
or stop order for entry

Exactly right!

 

[CannonTrading_Ilan]

For me it depends if it is entry or exit.

When manually trading I use market orders or stops to get in ( if I am waiting for momentum). Exits I normally have limits or MIT ( market if touched).
On some of the auto systems I have limits orders working but with a setting that if not filled in X seconds go to market.

Also depends on which market...with NQ I normally enter and exit with market too fast....with bonds I try limits most of the time and try to gain that $31.50 tick size....

More on the topic and others on our blog.

 

[ceaser]

Can you mix the orders say a limit order for the buy and a market for the sell.

 

[virtusa]

Can you mix the orders say a limit order for the buy and a market for the sell.

You can take a different order type for each entry or exit.

 

[Bad_Badness]

Marketable Limit for me. Basically, a Market with protection.

 

[comagnum]

Using limit orders on futures day/night trades - I let price come to me. There is no right or wrong way - whatever works for you.