Are Limit Orders Normally Processed a Tick Late?

jeremymgp · Mar 18, 2009

Hello,

I've had this question for ages, but is it normal for limit orders to always be executed one tick out. For example, I have:
A buy limit order on the Bund at 122.30
Stop loss at 122.22
Limit take profit at 122.42

However many times price hits 122.30, my order will only go through when it crosses to 122.29
Stop loss always gets executed immediately at price.
Similarly however many times price hits my take profit of 122.42, the order will ever be executed when it crosses to 122.43.

This is the case in almost every trade, 99% of limit orders get executed at the next Tick. Is this normal?

Thanks,
Jeremy

foredog · Mar 18, 2009

Generally the limit will only trigger if the market actually trades at that price, therefore if someone takes the offers at 122.3 this will leave them 122.31 offered so you'd trade at that.

Or at least that's how i find it

new_trader · Mar 22, 2009

jeremymgp said:
Hello,

I've had this question for ages, but is it normal for limit orders to always be executed one tick out. For example, I have:
A buy limit order on the Bund at 122.30
Stop loss at 122.22
Limit take profit at 122.42

However many times price hits 122.30, my order will only go through when it crosses to 122.29
Stop loss always gets executed immediately at price.
Similarly however many times price hits my take profit of 122.42, the order will ever be executed when it crosses to 122.43.

This is the case in almost every trade, 99% of limit orders get executed at the next Tick. Is this normal?

Thanks,
Jeremy

Yes, this is normal. You are getting [email protected] or better aren't you?

Rules of thumb:

-LIMIT orders are used if you care about fill PRICE.
-MARKET/STOP orders are used if you care about fill SPEED.

Are Limit Orders Normally Processed a Tick Late?

jeremymgp

Newbie

foredog

Experienced member

new_trader

Legendary member

Similar threads