Instant fills on SL but relatively longer wait for limit orders? | Traders Hideout


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Instant fills on SL but relatively longer wait for limit orders?

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Had a genuine question as to how most brokers operate in regards to limit orders and stop losses. I've noticed that literally every time I place a limit order, it takes a lot of time to fill even though I queued earlier than the contracts I see. I will get filled when that level clears all contracts including mine, bumping price up to the next level. However, I noticed that when I have my stop losses in, then my order gets filled INSTANTLY. Even if I am 400th contract on the DOM, I get filled as soon as the price immediately hits offer I get stopped. So, can anyone explain why this is the case? Are brokers responsible for these executions? Or do all brokers operate this way? Is this a default thing? Preference? Really curious.

This works as designed and has nothing to do with brokers.

A limit order gives you a guaranteed price at which you enter the market. But you are in a queue so you have to wait until all the orders that were placed before yours are filled. Also you may not get filled if the market goes back. So limit orders=guaranteed price, not guaranteed fill.

A stop order is like a market order, in that when the level where your stop rests is touched, the stop becomes a market order.

Market orders by definition give you a guaranteed entry (fill) into the market, but you don't get a guaranteed price.

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