Question to Don

[ProgrammerGuy]

Don,

You don't have to answer this. But I was wondering what you believe is better, to place orders at market or to place orders at limit?

Thanks

 

[Don Bright]

Quote from ProgrammerGuy:

Don,

You don't have to answer this. But I was wondering what you believe is better, to place orders at market or to place orders at limit?

Thanks

Not one of the tougher questions I get around here, LOL.

I use 99% limit orders since they are filled (most often) quicker than market orders on equities. The Specialist will often batch and has to match market orders, the limit orders will basically auto-execute.

I use market for eMini's entries due to my triggering criteria, I exit with limit orders.

Don

 

[ProgrammerGuy]

Quote from Don Bright:

Not one of the tougher questions I get around here, LOL.

I use 99% limit orders since they are filled (most often) quicker than market orders on equities. The Specialist will often batch and has to match market orders, the limit orders will basically auto-execute.

I use market for eMini's entries due to my triggering criteria, I exit with limit orders.

Don

thanks for the reply don. When you say limit orders are most often quicker than market orders on equities, you are talking about placing it for a buy limit above the ask right, and a sell limit below the bid price right?

 

[dalailama]

I was hoping Don would say "Never ask me about my business" in his best Brando voice

 

[Don Bright]

Quote from ProgrammerGuy:

thanks for the reply don. When you say limit orders are most often quicker than market orders on equities, you are talking about placing it for a buy limit above the ask right, and a sell limit below the bid price right?

You got it.

Don

 

[Don Bright]

Quote from dalailama:

I was hoping Don would say "Never ask me about my business" in his best Brando voice

I think that boat sailed about 6 years ago here on ET, LOL. Although a "family business" is a "family business' LOL.

Don

 

[Nasdaq5048]

I have another question for you Don. Why would people want to enter the closing auction order when they are commited to trade regardless of the price. Why wouldnt they just enter a regular mkt or limit order at 3:59:40 when they can see the price that they will be filled at? For the opening only plays, what's the difference of a 30.00 regular limit order at 9:29:40 and a 30.00 opening auction limit order? Thanks

 

[Don Bright]

Quote from Nasdaq5048:

I have another question for you Don. Why would people want to enter the closing auction order when they are commited to trade regardless of the price. Why wouldnt they just enter a regular mkt or limit order at 3:59:40 when they can see the price that they will be filled at? For the opening only plays, what's the difference of a 30.00 regular limit order at 9:29:40 and a 30.00 opening auction limit order? Thanks

Quite often you'll see a gap between the 4PM price and the MOC price. On S&P "add" days, sometimes a dollar or two difference. Some buys place an MOC sell order at 3:50, then buy at 3:59:40 - I don't recommend that to my people, but it really worked well a while back. Now we just go by imalance amounts. By tracking the same stocks every day, with 10 minute snapshots of prices, you can see patterns that develop.

Don

 

[speculatus]

Quote from Don Bright:

Not one of the tougher questions I get around here, LOL.

I use 99% limit orders since they are filled (most often) quicker than market orders on equities. The Specialist will often batch and has to match market orders, the limit orders will basically auto-execute.

I use market for eMini's entries due to my triggering criteria, I exit with limit orders.

Don

Hmm...

If I remember rules correctly, Direct+ market orders up to 1 million shares are eligible for automatic execution, so it should be no difference in speed between market order and marketable limit order executions...

 

[Longhorns]

Quote from Don Bright:

Some buys place an MOC sell order at 3:50, then buy at 3:59:40 - I don't recommend that to my people, but it really worked well a while back.

Don,

In that scenario, the "MOC sell order" at 3:50 would be improperly marked since the trader isn't actually selling any shares...he's shorting.

How do you get around the SEC/NYSE rules for that?