What a cop out ....... you can't give a real-life example of how a Limit Order would be superior to a Market Order - in any market conditions.
You mentioned
"AAPL on the day ES opened limit down", but quickly abandoned that idea for some external link to a Business Insider article and
"SPY options" and now you're onto
"ETFs such as SDY and DVY".
Holy SHITBALLS ..... Your mind wonders all over the place.
I will reiterate my position to get back on topic. From post #5.
"Market orders are perfectly fine, and you will not get a "
lousy fill". And during volatile times
Market Orders should be used exclusively, the OP will figure that out after a few trades."
Again, you FAILED to read and comprehend my post. So let's go back to trade school 101.
From Schwab's site (emphasis in bold):
Order types
A
market order is an order to buy or sell a stock at the best possible price available at the time the order is received in the marketplace. A market order for a New York Stock Exchange (NYSE) or NASDAQ equity
will generally be filled at or close to the National Best Bid and Offer (NBBO).
The NBBO is a term that refers to the US Securities and Exchange Commission (SEC) requirement that brokers
attempt to provide customers the best available bid price when their customers sell securities and the best available ask price when they buy securities. The NBBO is dynamically updated throughout the trading day to show a security's highest bid and lowest offer (ask) among all exchanges, execution venues and market makers registered to trade that security.
It is important to remember that factors such as the size of your order,
significant news reports and rapidly changing market prices can result in execution at a different price than the NBBO. Additionally, if the size of your order exceeds the number of shares available at the time your order is entered, your order may be split into child orders and executed at several different prices. For NASDAQ securities, Schwab utilizes intelligent order routing technology.
Market orders are normally placed with a "day only" time in force, which means they will trade only on the business day and in the trading session in which they're placed. Market orders placed after 4:30 p.m. ET will be entered for the next trading day at 9:30 a.m. ET. Because market orders are typically filled very quickly, once they are entered, they generally cannot be canceled.
It is important to remember—particularly with large orders or
in fast market conditions—that you are never guaranteed the NBBO you're quoted at the time your order is entered."
Now, go do your homework and read about NYSE Rule 48. Those who had market orders on AAPL, DVY and SDY got SMOKED out of their positions at the open (i.e. those who sold "at market") since the orders were executed at prices that were NOT at NBBO.
Therefore,
a clear cut example was someone who had an order to sell at market SDY at the open, and got filled WAY below the prior day close, even though SDY snapped back immediately after filling all of the market orders.
However, you are free to use whatever order type that fits your trading style, regardless of volatile market conditions. If you want to exit a stock regardless of price, then sure, use a market order, as long as you are ok with slippage.
