StockFetcher Forums · General Discussion · slippage with real trades vs. demo account<< >>Post Follow-up
jfue611-wlzz973kg-wqu558v
20 posts
msg #100239
Ignore jfue611-wlzz973kg-wqu558v
4/13/2011 6:46:49 PM

does anyone have experience here with how much slippage occurs between demo account trading and actual trading of market orders? I have been successful with demo account trades (MB Trading) and would like to know how much difference I may see when I trade with real money.

Eman93
4,659 posts
msg #100244
Ignore Eman93
4/14/2011 2:13:55 AM

Depends on a lot of factors one the size of the order... and the liquidity.. if you are trading a thin stock then you will not get all your market orders filled at the same price.. IMHO... you can use stop limit and limit orders.

jfue611-wlzz973kg-wqu558v
20 posts
msg #100245
Ignore jfue611-wlzz973kg-wqu558v
4/14/2011 6:37:25 AM

thank you. Lets assume high volume (5million/day?) and stock price>10. Would market order slippage be typically 1 penny off? 2 pennies?

drew9
171 posts
msg #100251
Ignore drew9
4/14/2011 8:03:56 PM

The biggest issue with slippage is trade size. If you try and trade a few hundred shares it will not be a problem as there is usually that or more being offered. It becomes much harder trying to trade "size" and this is where limit orders become critical. Trading large volumes on Market Orders just puts up a big red flag to the Market Makers to say come and take advantage of me! As soon as they push up the price to fill your order, it will fall right back to where it usually started.

jfue611-wlzz973kg-wqu558v
20 posts
msg #100278
Ignore jfue611-wlzz973kg-wqu558v
4/16/2011 11:23:54 AM

thank you. good advice.
My concern with limit orders is I may only get a small portion of my intended trade size and I would be day trading so quick ins are needed.
I'm looking to trade 1000 shares at a time.
I do not know whether it is better to get the larger trade size filled at a higher than desired price or if it is better to avoid the higher than desired price but get only 10%-50% of the 1000 shares filled and get dinged on the commission.

Do you think daytrading is best done using limit orders for entry along with commissions on a per share basis (i.e. Interactive Brokers) as opposed to using market entry orders along with commisions on a per trade basis (i.e. MB trading)?

four
3,998 posts
msg #100285
Ignore four
4/16/2011 5:47:23 PM

"Lets assume high volume (5million/day?) and stock price>10."

I quote your previous post and see you look to trade 1000 shares on volume > 5,000,000
1000 - 2000 shares will only be a small blip on any radar screen.

IMHO

StockFetcher Forums · General Discussion · slippage with real trades vs. demo account<< >>Post Follow-up

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