Market orders + News trades = ? | Forex Factory

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Market orders + News trades = ?

  • #1
  • First Post: Apr 27, 2007 12:34am Apr 27, 2007 12:34am
So, word on the street is that using market orders during news announcements is somewhere between a death-wish and an act of stupidity. I understand the negative aspect of using market orders, that sometimes you get a price that is definitely not desirable. It seems to me that this would only occur if you were much slower than just about every else trading in the same direction, which leaves you with no liquidity and a sick feeling in your stomach.

So I have very little experience in this business, and my opportunities to test my news trading are somewhat limited, as there are only so many trade-worthy news announcements in the day. So in the end, my question to the successful news traders out there is this:

Are there any of you that use market orders during news releases?
  • #2
  • Apr 27, 2007 12:43am Apr 27, 2007 12:43am
Boy I only started trading FX like this back in 2003, before that it was futures. But I can remember it wasn't the brightest thing to do back then in FX and it only took me one time never to do it agin in futures. Granted you can just push a button these days but I won't forget that day I phoned in an order, watched Future Source flash and I went hope that wasn't me...LOL

Either the auto-clicks are doing a really good job marketing or their right "there's a sucker born every minute".
  • #3
  • Apr 27, 2007 2:12pm Apr 27, 2007 2:12pm
Okay, I'm insulted. I use market order and it's no where near stupidity. If you call making 1000+ per week using market order during news call stupdity than you gotta be making in 10,000 per week. Anyway, it really depends on what kind of clearinghouse you use. I use clearinghouse that gives me the price that they offer and nothing else. If the price changes from the moment I click to the moment it gets there, then my order does not get executed. Yes, it's little different than what a true market order is, but that's what I get. I started this new thread before I read your post, and I detail how I do it. And i will continue to do it until it doesn't work anymore. I almost never lose money using market order during news.
  • #4
  • Apr 27, 2007 2:43pm Apr 27, 2007 2:43pm
Quoting milkcake
Okay, I'm insulted. I use market order and it's no where near stupidity. If you call making 1000+ per week using market order during news call stupdity than you gotta be making in 10,000 per week. Anyway, it really depends on what kind of clearinghouse you use. I use clearinghouse that gives me the price that they offer and nothing else. If the price changes from the moment I click to the moment it gets there, then my order does not get executed. Yes, it's little different than what a true market order is, but that's what I get. I started this new thread before I read your post, and I detail how I do it. And i will continue to do it until it doesn't work anymore. I almost never lose money using market order during news.
hi milkcake

i'm kinda new on this
what is exactly market order ??

could you explain me ??
Every moment in the market is unique
  • #5
  • Apr 27, 2007 2:53pm Apr 27, 2007 2:53pm
Market order is NOT a pending order but a execute at once order.

if not market order, then it must be a pending order like limits and stops
  • #6
  • Apr 27, 2007 4:01pm Apr 27, 2007 4:01pm
Quoting milkcake
Okay, I'm insulted. I use market order and it's no where near stupidity. If you call making 1000+ per week using market order during news call stupdity than you gotta be making in 10,000 per week. Anyway, it really depends on what kind of clearinghouse you use. I use clearinghouse that gives me the price that they offer and nothing else. If the price changes from the moment I click to the moment it gets there, then my order does not get executed. Yes, it's little different than what a true market order is, but that's what I get. I started this new thread before I read your post, and I detail how I do it. And i will continue to do it until it doesn't work anymore. I almost never lose money using market order during news.
OK so who's your broker?
  • #7
  • Apr 27, 2007 4:44pm Apr 27, 2007 4:44pm
I never did this before during the first minute of news, but if you look at the candle at the NZD Interest rate statement, you can see where they took my dignity and pride and handed it to me on a plate.
I'm not sure what events are safe to trade that way now.
  • #8
  • Apr 27, 2007 5:04pm Apr 27, 2007 5:04pm
I'm with MilkCake... I use market orders only when trading the news and trade the news using one of the autoclick services... For over 2.5 months I've cleared over $1000/week on average and my weekly net will only increase as my account balance increases thereby allowing me to place more lots per trade... Granted I use a fill or kill broker and get an excellent fill or no fill at all... If your going to use a ECN broker its probably a good idea not to use market orders because the amount of slippage can be extreme... And no, I won't discuss which broker I trade with as that would be cutting my own throat...
  • #9
  • Apr 27, 2007 6:28pm Apr 27, 2007 6:28pm
Quoting milkcake
Okay, I'm insulted. I use market order and it's no where near stupidity. If you call making 1000+ per week using market order during news call stupdity than you gotta be making in 10,000 per week.
Ok, if that all I need to be clearing then yes I will call it stupidity if you want cause its not trading and won't last forever so make it why you can

Then when it stops working at that broker go to the next and the next for as long as you can. Nothing wrong w/ making a little extra cash I just hope your learning to trade while your making the easy money.
  • #10
  • Apr 27, 2007 6:30pm Apr 27, 2007 6:30pm
Quoting LEXngton
I'm with MilkCake... I use market orders only when trading the news and trade the news using one of the autoclick services... For over 2.5 months I've cleared over $1000/week on average and my weekly net will only increase as my account balance increases thereby allowing me to place more lots per trade... Granted I use a fill or kill broker and get an excellent fill or no fill at all... If your going to use a ECN broker its probably a good idea not to use market orders because the amount of slippage can be extreme... And no, I won't discuss which broker I trade with as that would be cutting my own throat...
Hit me up in six month and let me know how your still doing, I might reopen my news trader challange just for you.
I just find it funny how the auto-click providers them self can't get it work and have been bouncing from broker to broker and use demo account for there videos.
  • #11
  • Apr 27, 2007 8:24pm Apr 27, 2007 8:24pm
market order literally means "i want in, no matter what price". its like running into a crowd of people and saying, "i will buy a bottle of water from the person with the lowest price". if there is only one guy with a bottle of water, he might say "$1,000, SOLD!".

THAT is what a market order is, plain and simple. and this is why we hear so many people cry about market orders - during news there is low liquidity (only a few bottles of water being offered).

also it is important to know that stop orders ARE market orders. there are two main order types, market and limit. the limit order is the order of the professional trader. a pro never runs into the crowd with a market order, that is foolish (unless he knows for a FACT there are tons of bottles for sale at cheap prices).

it really amazes me how uneducated the forex community is about market orders. in other markets like stocks and futures it is not like this, even the noobs understand what a market order is. i see guys that have been on this forum for a year and still dont know exactly what a market order is!! i think this has something to do with the fixed spread nature of retail Forex (although that is changing). the fix spreads masked the true meaning of a market order (and a market, for that matter) for so long that there is very little educational material about it. basically there is just a lot of complaints about brokers, which really is people not understanding market orders (yes there are some legit complaints, but 99% are about market orders). i hope FF is making an impact in educating the young traders. i know me and many others on here have made big efforts to educate the community on this. unfortunately there is a whole other world out there who is fooling noobs into thinking their broker is at fault. we can only hope that gradually changes as retail forex moves to the more natural variable spreads, it is already happening slowly.
Relax and be happy.
  • #12
  • Apr 27, 2007 8:33pm Apr 27, 2007 8:33pm
Quoting don perry
if not market order, then it must be a pending order like limits and stops
not true, a market order can be a pending market order. a "stop market" order mean "if it gets to this price, throw out a market order". it is pending a certain price, but becomes a market order when that price is hit. this is the traditional "stop loss" order, which is indeed a market order.

there is also a "stop limit" order, but people dont like those because your stop can get jumped if the limit price is not there for you. when i do set a stop loss in my platform, stop limit is what i use, i accept the risk of getting jumped over the constant slippage. but normally my stops are not in the platform, a trader must be there in person for his exits
Relax and be happy.
  • #13
  • Apr 27, 2007 8:40pm Apr 27, 2007 8:40pm
Quoting milkcake
Okay, I'm insulted. I use market order and it's no where near stupidity. If you call making 1000+ per week using market order during news call stupdity than you gotta be making in 10,000 per week. Anyway, it really depends on what kind of clearinghouse you use. I use clearinghouse that gives me the price that they offer and nothing else. If the price changes from the moment I click to the moment it gets there, then my order does not get executed. Yes, it's little different than what a true market order is, but that's what I get. I started this new thread before I read your post, and I detail how I do it. And i will continue to do it until it doesn't work anymore. I almost never lose money using market order during news.
LOL!!!

you are fooling about 70% of the people on this board with this talk, but the other 30% can see through it like glass.
Relax and be happy.
  • #14
  • Apr 27, 2007 8:40pm Apr 27, 2007 8:40pm
great post merlin! I just hope u post more often
  • #15
  • Apr 27, 2007 8:43pm Apr 27, 2007 8:43pm
Quoting merlin
you are fooling about 70% of the people on this board with this talk, but the other 30% can see through it like glass.
im officially on a mission LOLOL!!
Relax and be happy.
  • #16
  • Edited Apr 28, 2007 12:17pm Apr 27, 2007 10:09pm | Edited Apr 28, 2007 12:17pm
I won't even mention the one for 700pips on the NZD two days ago....

Hmmm let see that 10 x 8 x 700 = 56k to bad they took it back

Soon they will all stick like they should and do in every other markets ie: stocks and futures
  • #17
  • Apr 27, 2007 10:14pm Apr 27, 2007 10:14pm
Quoting merlin
LOL!!!

you are fooling about 70% of the people on this board with this talk, but the other 30% can see through it like glass.
I actually do not know what you mean. Like I said, I use something that is not a true market order. Well from what I've talked to, several people do this and it's not just me. So many people do use market order on the news depending on how the broker works.
  • #18
  • Apr 27, 2007 10:18pm Apr 27, 2007 10:18pm
Quoting turbokaos
Ok, if that all I need to be clearing then yes I will call it stupidity if you want cause its not trading and won't last forever so make it why you can

Then when it stops working at that broker go to the next and the next for as long as you can. Nothing wrong w/ making a little extra cash I just hope your learning to trade while your making the easy money.
Definitely, I do realize that. That's why I am trying hard to perfect technical / longer term trades. Only then one can be a good trader.
  • #19
  • Apr 28, 2007 5:13am Apr 28, 2007 5:13am
Quoting turbokaos
I won't even mention the one for 700pips on the NZD two days ago....
Hmmm let see that 10 x 8 x 700 = 56k to bad they took it back but I think that only cause it threw the guy into a margin call on the other side or there keeping that one for them selfs (not like we haven't see em try this before. LOL)
Soon they will all stick like they should and do in every other markets ie: stocks and futures
If a market order is like Merlin says "I want to be filled at the next best price, any price' then why are you having perfectly legit trades which fall within that ambit taken away from you?
Or does it fall within the definition of a market order mentioned above only when your broker can make a profit out of it? That is by honouring a trade using market order where trader makes a loss and busting a trade where trader uses market order and makes a profit. Thereby broker keeping profits from the loss trader. For example, the Zek situation where you had a busted trade honoured only after you became aware that Zek's loss from same ticket was not also busted by ODL?
  • #20
  • Last Post: Apr 28, 2007 6:30am Apr 28, 2007 6:30am
It seems like wild west lives on...
It's all good discussing theoretical workings of orders, but clearly it's not what happens in the "real world forex".
Maybe brokers should start filling limit orders at different prices as well. Like if you have a buy at 1.3670, they could round that up to 1.3700 and fill you there, but then again, 1.4000 could be even better.

Best regards,

Vlad
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