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I have gone almost exclusively to market orders. Here is why:
a) Resting stop losses. If a market goes south rapidly, I could (and did)
get stuck with a large loss, for the sake of saving a few cents with a stop
limit order.
b) In the case of a breakout (esp with large volume), you could be sitting
there with no position while the stocks with a stop limit order unfilled.
Again, I have been there and done that, and for the sake of saving a few
pennies, did not get into positions worth hundreds of dollars.
With liquid stocks, the bid/ask spread is usually not very large.
On the other hand, if you are watching only a few stocks on a real time
basis where you can observe the price action and the bid/ask spread, then
you may be safe in using limit orders. If you are not glued to your
monitor, then (IMHO) use stop market and not stop limit orders.
Regards,
Paul
>----- Original Message -----
>From: "Ian McVicar" <icm63@xxxxxxxxxxx>
>To: "OmegaList" <omega-list@xxxxxxxxxx>; "QCharts"
<qcharts@xxxxxxxxxxxxxxx>
>Sent: Monday, March 18, 2002 11:48 PM
>Subject: Interactive Brokers Stock MKT or LMT orders ????
>
>
> > Sorry if topic is off user group subject matter.
> >
> > But...
> >
> > I am just about commence trading stocks on NYSE and NAS with IB. There
> > execution is 2 sec or so.
> >
> > If you are an equity trader what order type do you advise with IB, MKT
or
>LMT,
> > any advice would be great ?
> >
> > Thx in advance.
> >
> > Ian
> >
> >
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