Opening Orders Are They Any Better?

[jayjay121]

thanks for your replies.

 

[gmst]

Quote from jayjay121:

thanks for your patience.


so why do traders use opening orders when they could use limit orders instead and have a better fill rate?............a opening order will cancel after the opening print where as a limit order will not. Opening order type traders often complain about their fill rate, wouldn't they achieve a better fill rate with limit orders?. Price will often retrace to our price after the first couple of mins to achieve a fill. Opening order traders say their edge is because they get a ineffiency in price at the open, but open is often the most volatile time of the day and id say the first 5 mins can be inefficient, not just the opening print.


what do you think?

I don't have much experience with stocks but I often wondered about this thing. Maybe ask Don Bright - he is a guru of opening only orders. He can explain the strategy better than most.

 

[Shadetree42]

There are times when you think a stock will move a certain direction right after the open. In these cases, on-open orders are desirable. The alternative (regular limit order) leaves you exposed to a stock running through your order.