Also, if you are using a Web-based program to execute orders it may take several minutes to get the order processed and moved to a market maker or ECN to be placed in line for execution. With direct-access software, day traders, brokers, and market makers have the means to take advantage of all of those market orders filling all of those limit orders. Brokers that actively trade their own stocks or house accounts just love market orders, as those orders provide constant movement in prices. Remember, they are also using limit orders to buy and sell stock. Yep, it's a real bummer.
Brokers get their commission plus they get their orders filled at the same time.
TechTV Inc. All rights reserved. We respect your privacy .