On Mon, Nov 8, 2010 at 2:21 AM, Jian <[email protected]> wrote: > hey jbooktrader > I saw all orders created by jbooktrader are market orders, not limit > orders. Is there any risk of doing this? for example, after some special > events, like fed meeting note announcement, the price is change very > rapidly, is the following situation possible: jbooktrader decides to buy or > short at a price, then place a market order, then filled with a price that's > far away from the expected price? > > > In my live trading, IB executions were from 150ms to 600ms. The slippage is virtually 0, that is, the fill price is nearly always the same as the expected price. I do acknowledge that under some extreme market conditions, the slippage may widen, but I think the probability of that is quite low. The limit orders are not without the risks, either: think about chasing the market with a limit order endlessly, thus incurring a bigger loss compared to the one taken with a market order with some slippage.
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