Normal Limit orders

When setting a normal limit order, does everyone factor in the broker spreads only for their stop loss, or are the broker spreads factored into the limit price and take profit levels as well? I was wondering because wouldn’t you want your limit order(entry price) to be hit without the market taking off on you?

Are you scalping? Sounds like you’re worried about a couple pips or there.

I look more at market structure for entries and exits and don’t really worry about the spread. I trade majors and a couple minors here and there.

1 Like

I factor in the spreads for SL and TP both

Not scalping. Let’s say I’m not available to be in front of a computer, and I’m out and about, and I want to set a limit order.

Here’s a good read for you

And another good one, sense you’re asking about limit orders.

Give those a read!

1 Like

There’s no such thing as a “normal” limit order.

Different forex brokers use terms like “limit order” (and even sometimes “pending order”) with slightly, subtly different meanings. Misunderstandings are common.

Not everyone, no.

That’s up to you to decide. You need to be able to trade from a set-up with which the answer to that question is whatever you want it to be. You need to use a broker/platform combination where that’s easy to do. If the answer to that question isn’t and can’t be whatever you want it to be, then you need a different broker/platform combination so that you can make it whatever you want it to be. You’re a customer and you have the right to choose.

I’m interested, and intrigued, @Hilrey (because I’m a psychologist and psychotherapist), and I want to ask you something. Please don’t imagine that I’m criticising in any way. I’m not. But I can see that you have a problem over this, and it isn’t really getting resolved, is it?

You’ve been a member for 5 years. During those 5 years, you’ve started off 5 threads, here. You started all 5 of them to ask very, very closely related questions. Really, almost the same question, each time, no? :wink:

That makes me think that you have one “Big Issue Stumbling-Block” lurking in the background, that’s really preventing you from understand this one little point, that apparently “Simply Will Not Go Away For You”?

And that in turn makes me wonder how people here can help you, so that you can get that resolved and move on from it? Which, at the moment, I think you’ll agree, just isn’t really happening?

Would you like that to happen?

What;s the underlying problem, here, for you?

Can we help, with it? :confused:

4 Likes

Yes, I always had issues with my limit orders not triggering. I only do buy-and-sell limit orders, so I like to set limit orders when I’m away from a computer and cannot view a chart. The reason I asked similar questions over the years is because no one has given me a clear concise answer.

Spread is non existent when a limit order is placed. I never pay attention to spreads and don’t use stop losses. My broker rewards me for supplying liquidity, charges me for demanding it.

Limit order supplies liquidity, stop-order is a market order that demands liquidity. Price (mid-price) being the equilibrium, depth of market is more valuable to traders.

3 Likes

A proper limit order should account for more than just spreads—it should consider execution probability. Spreads primarily affect stop-losses, but if you’re setting limit entries too precisely without factoring in liquidity or microstructure, you might end up watching price tap your level and take off without you.

1 Like

Looks like the problem here and in the other threads where you asked the same thing is that people are using the term “limit order” with subtly but confusingly different meanings. As they do. And so do brokers.

I think what you’re probably saying is that you enter trades only with buy-stop and sell-stop orders?

No buy-stop and sell-stop orders. Limit order, meaning if I’m doing a buy limit order, I’m going to use Tsla for an example: Tsla is at 305 and I put a buy limit order for 300 for Tsla, so I’m expecting Tsla to drop below 305 to tap 300(which my limit order will be). As soon as Tsla touches 300 I’m expecting my buy limit order to be filled.

1 Like

Yes, that’s certainly a “normal limit order,” not a buy-stop! :slightly_smiling_face:

Honestly, the answer was given in the pink hat trader’s initial reply to you: it’s up to you. You can decide this for yourself, and instruct your broker accordingly, by factoring it in or not factoring it in, whichever you prefer. The exact way you’d do that is that you can set your orders to be filled when the bid, ask or median price hits the level - your choice.

(If your broker doesn’t give you that choice, for some reason, then you may need another broker that does!).

Spreads are variable, though - unless you (effectively) pay extra to use a fixed-spread broker. I wouldn’t, myself, but it might suit you?

Like others above, though, I don’t quite understand why this is such a big issue to you? Does it honestly matter all that much? I see that it would if you were a scalper, but you’re obviously not (and far from it, I suspect?).

I have to agree with our pink hatted friend about that. And hope I won’t offend you by doing so? We’re trying to help. But honestly the factual answer is “Your choice” and my own comment/opinion is “Why does it matter so much?”

I hope this post’s more helpful than confusing or annoying, anyway.

I’m aware of limit orders and intend to use them when I cannot look at a computer. I’ll do a premarket analysis and have my price levels set for my entry, stop loss, and take profit targets. I was asking if factoring the spread(since it’s a limit order) onto my entry point, so once price reaches there on my broker, it will trigger the(limit order), but I’m doing some testing and figuring that out on my own.