3 ms·

I'm not sure about that. If the market is moving in an orderly fashion, and you're trading in a very liquid asset, market orders remove a psychological impedim

I'm not sure about that. If the market is moving in an orderly fashion, and you're trading in a very liquid asset, market orders remove a psychological impediment to trading. For someone who trades 3-5 times a year, doing a limit order requires additional consideration (making sure you're doing the right limit, setting a limit price, etc.) If you just want to buy or sell some stock for reasons totally unrelated to trading, It's rational to accept a tiny risk that the market is going to have a shit fit between when you hit submit and when your order is filled 2 seconds later when the news is quiet. Certainly, I would never put in a market order when the market is operating under circuit-breakers and things are unstable. When things are stable, it can be a reasonable choice for someone transacting in stock who just wants it done so they can get on with other things they have to do.

kasey_junk 11y ago
If you are trading 3-5 times a year, I'd argue that requiring people to put in the limits on their limit orders would be a good thing. It makes people think about how the market actually works instead of how they hope it works.
- secabeen 11y ago
  But what benefit does that actually have? People aren't going to remember this interaction or learn anything, they're just to be annoyed at having to come up with that number. They might even put off the transaction. I would be in favor of restricting the use of market orders by non-professionals during any time a market special rule is in place (circuit breakers, Rule 48, etc.) However, I think allowing them during normal market operation makes transacting easier for investors, which is also a good thing.
  - kasey_junk 11y ago
    If someone is so annoyed to have to come up with a price that makes their order invalid, I'd argue they should put off the transaction.

kasey_junk 11y ago

If you are trading 3-5 times a year, I'd argue that requiring people to put in the limits on their limit orders would be a good thing. It makes people think about how the market actually works instead of how they hope it works.

secabeen 11y ago
But what benefit does that actually have? People aren't going to remember this interaction or learn anything, they're just to be annoyed at having to come up with that number. They might even put off the transaction. I would be in favor of restricting the use of market orders by non-professionals during any time a market special rule is in place (circuit breakers, Rule 48, etc.) However, I think allowing them during normal market operation makes transacting easier for investors, which is also a good thing.
- kasey_junk 11y ago
  If someone is so annoyed to have to come up with a price that makes their order invalid, I'd argue they should put off the transaction.