 |
 |
| Market orders allow flexibility for those able to watch the markets in real-time. Limit orders allow convenience for those who can't, or don't want to. They also satisfy the need for certain personality types to bind their decisions so they don't back out later. Limit orders provide an excellent vehicle for risk management. A limit can be placed near the far side of an ET that may or may not get filled. If it doesn't, move on to the next trade. If it does, you've caught that extra volatility and are positioned at a very low risk level. Day traders have special entry considerations. They can place market orders with a discount broker only if they have confidence that the broker fills trades promptly. The day trader has to evaluate the markets minute-by-minute. Their next trade may find confirmation in the tape seconds before they have to execute. Limit orders placed through discounters may take several minutes for confirmation, leaving you open and vulnerable. Limit orders also work best (and may be the only available route) in direct-access interfaces. If your current discounter exposes you to execution risk, consider changing to direct-access immediately. |
|
|
