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[MT4] Limit orders

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nicholishen
1345
nicholishen  
Why is it that when I send a limit order in at market prices (e.g. current Ask for a Buy-limit) it only fills on the next tick or after - never instantly. 
nicholishen
1345
nicholishen  

I also have another question which is somewhat related so I won't start a new thread... 

Does anyone currently mitigate slippage by using limit orders at market price instead of market orders? If you do what is your logic? I'm thinking something like this... 

void OnTick()
{
   LongOrder();
   ShortOrder();
}

void LongOrder()
{
   if(LongConditionsValid() && !LongPositions())
      if(LongLimitExists()) 
         ModifyOrderToNewAsk();       
      else     
         OpenBuyLimitAtAsk();      
   else
      if(LongLimitExists())
         LongLimitDelete();
}
nicholishen
1345
nicholishen  
Alain Verleyen:
Because you need a counterpart. For a BUY LIMIT, you need a seller. Theoretically it could never be filled.
There's no shortage of counterparties at the ask, especially in forex. Any other market would fill a buy limit instantly at the ask unless it's an extremely fast market or the limit volume exceeded the ask volume. This is not the case with MT. The order doesn't even get placed until the next tick.
nicholishen
1345
nicholishen  
Alain Verleyen:
I had deleted my answer.
I thinking this is actually flaw in the software or a purposefully built in feature to benefit brokers... The platform is making limit orders active when the limit price is better than market price when in actuality it should be better than or equal to market price.
Alain Verleyen
Moderator
34395
Alain Verleyen  
nicholishen:
I thinking this is actually flaw in the software or a purposefully built in feature to benefit brokers... The platform is making limit orders active when the limit price is better than market price when in actuality it should be better than or equal to market price.

I am unsure how it works with MT4, that's why I deleted my posts. It's interesting question, I will check.

nicholishen
1345
nicholishen  
Alain Verleyen:

I am unsure how it works with MT4, that's why I deleted my posts. It's interesting question, I will check.

I'm sure this is obvious but I'm trying to use limit orders in lieu of FOK... If you know any other tricks I'm all ears... Trying to have complete control over entry slippage.
whroeder1
16755
whroeder1  
nicholishen: I thinking this is actually flaw in the software or a purposefully built in feature to benefit brokers... The platform is making limit orders active when the limit price is better than market price when in actuality it should be better than or equal to market price.

Nothing to do with the platform, limit orders are on the servers. If they are triggering at a worse price that is the broker's fault.

nicholishen
1345
nicholishen  
whroeder1:

Nothing to do with the platform, limit orders are on the servers. If they are triggering at a worse price that is the broker's fault.

I think you missed the point. The broker server isn't activating the limit until the limit is better than market price instead of better than or equal to  (like a limit order is supposed to do). That means a trader will never be able to send an active limit order in at the market price on the MT platform. I said nothing about a worse price.
Yohana Parmi
3493
Yohana Parmi  
nicholishen:
I think you missed the point. The broker server isn't activating the limit until the limit is better than market price instead of better than or equal to  (like a limit order is supposed to do). That means a trader will never be able to send an active limit order in at the market price on the MT platform. I said nothing about a worse price.

maybe .. slippage :)

nicholishen
1345
nicholishen  
Yohana Parmi:

maybe .. slippage :)

It's not slippage.... It's literally an inactive order until the limit is better than market - which is not how limit orders are supposed to work. Limits should be active <= market price but with MT it's limit < market. In doing so they they are forcing you to take action on market rates with a market order instead of a limit order opening you up to the risk of slippage. So your options are market+risk or you hope the ask goes up a tick and then comes back down to your limit order. What a PITA

Yohana Parmi
3493
Yohana Parmi  
nicholishen:

No it's not slippage. It's literally an inactive order until the limit is better than market - which is not how limit orders are supposed to work. Limits should be active <= market price but with MT it's limit < market. In doing so they they are forcing you to take action on market rates with a market order instead of a limit order opening you up to the risk of slippage. So your options are market+risk or you hope the ask goes up a tick and then comes back down to your limit order. What a PITA


Yes, I know how difficult it is.

This business has very complex system, and we should not expect it perfect. At least need time.

Something made by humans must have weaknesses. We can report it, and it can be fixed. (^̮^)

But, unfortunately the risk can not be eliminated or fixed.

It can only be reduced ˙ ͜ʟ˙

12
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