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I think its a matter of deciding which risk is the largest part of your current position, time or price. If your biggest risk is time because you're forced to
by philipodonnell 10y ago
I think its a matter of deciding which risk is the largest part of your current position, time or price.
If your biggest risk is time because you're forced to enter an order or you might miss the move or you need to enter an order quickly/automatically and can't take the time to figure out the best price, then a market order is fine.
If you biggest risk is the price (and you can afford to wait) then a limit order is better because you can essentially dictate the price at the expense of it maybe taking a long time/never to fill.
They're just tradeoffs between risks, much like most other decisions in the market.