Order types and slippage

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Kubilay Kaletaş
16
Kubilay Kaletaş  

Let me ask my question with an example,


Let's say the current price of EURUSD is 1.09000 and I want to buy a long position when the price hits at 1.09100.

In point of view of slippage, which of the following two options would be more advantageous on the average?

1. Entering a pending buy order at 1.09100

2. Sending a market order when the price hits at 1.09100.


Thnks a lot in advance

William Roeder
21914
William Roeder  
  1. The pending has the slight advantage, A) you are closer to the top of the queue (filled quicker,) B) there's no round trip network delay (filled quicker.)
  2. Don't worry about it unless you're scalping M1 or trading news.
  3. Humans can't watch the screen 24/7 so they use pending orders; EAs can, so no need for pending orders, have it wait until the market reaches the trigger price and open an order.
Kubilay Kaletaş
16
Kubilay Kaletaş  

I was thinking to code my simple manually tradable system in order to use market orders,

As, according to my observations, if we ignore the network delays, market orders are more instant.

Maybe wrong.

So no need to use an EA.


I don't know, in some cases, even if the market is not so volatile, why I'm getting from 1 to 3 pips slippage with my pending orders, especially for stop orders.

Broker related issue most likely.
el_looto
56
el_looto  
Kubilay Kaletaş:

I was thinking to code my simple manually tradable system in order to use market orders,

As, according to my observations, if we ignore the network delays, market orders are more instant.

Maybe wrong.

So no need to use an EA.


I don't know, in some cases, even if the market is not so volatile, why I'm getting from 1 to 3 pips slippage with my pending orders, especially for stop orders.

Broker related issue most likely.

someone has to take the other side of your trade.

thats why theres slippage; sometimes there is no volume at the exact price you want, and why high volatility usually goes hand-in-hand with low volume. Sometimes small orders get overlooked when large orders come in on the other side: its simpler to fill a 50 lot order with a 40 and a 10, and your 0.02 gets ignored because one of those other guys doesnt want a partial fill of 39.98.....

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