Limit or Market Orders

Quote from def:

In an electronic environment, all market orders need to be converted to some limit. Thus speed should be the same. However, on some exchanges - e.g. specialist, nasdaq pre-supersoes, firms selling order flow, most option exchanges, etc - orders may get into the hands of a human or a system that allows a delayed fill. IMO that gives a free option for the counterparty and thus you may be giving away a few ticks or the spread. As rharp states, a limit order does not have to equal the offer or bid.

Thanx for the response def. What I'm still wondering is, under what instance, if any, does a hundred share lot, market order, Nasdaq stock, go to a human if one is trading at IB.

**************************************************

"Always remember that I have taken more out of alcohol than alcohol has taken out of me."
- Winston Churchill
More...
 
What I'm still wondering is, under what instance, if any, does a hundred share lot, market order, Nasdaq stock, go to a human if one is trading at IB.
More...

Note: when I say hands of a human I mean that a person can do something to slow down or hold an order.

the answer is probably never for Nasdaq. in the past SOES orders were able to be held for 30 seconds. but all the ecn's and supersoes are electronic. There is one caveat - the AMEX. If the AMEX is showing the best bid or offer I believe there is a chance an order can get routed to them. They - probably by design - have poor systems and orders can get held. I'm not sure if IB is routing US stocks there - if so it would be a last resort. There was another thread on AMEX execution which I didn't fully read and I haven't discussed it with our US office. Thus others may want to comment.
 
Quote from Lobster:

If you use market orders it will bring better results for my Daytrading.
More...
You ever think about it? I mean, really, the only thing that moves a market is a market order.
 
Quote from def:



Note: when I say hands of a human I mean that a person can do something to slow down or hold an order.

the answer is probably never for Nasdaq. in the past SOES orders were able to be held for 30 seconds. but all the ecn's and supersoes are electronic. There is one caveat - the AMEX. If the AMEX is showing the best bid or offer I believe there is a chance an order can get routed to them. They - probably by design - have poor systems and orders can get held. I'm not sure if IB is routing US stocks there - if so it would be a last resort. There was another thread on AMEX execution which I didn't fully read and I haven't discussed it with our US office. Thus others may want to comment.
More...


I had a stock just last week that I had a buy stop on that should have triggered(I thought) and gone out . The order was not activated or sent. The IB rep said that because the bids were from AMEX and AMEX does not execute electronically that it was not a valid order route so was not activated. The thing that was interesting was that it was a Nasdaq stock. The thing that worries me is with a market order the price could get far away before another exchange triggers the stop....I know , use a limit.
 
You must log in or register to reply here.
Back
Top