Order Execution timeframe

[johntherevelato]

If I see a short term trading opportunity present itself to me at 11.30 am ET, and I click execute on my trading software, realistically how long will it be before I get filled? It's just that for a short term position that will last from only 15 mins to 1 hour, the speed of execution is vital.

Would I be right in thinking that orders will get filled more quickly with Nasdaq stocks than NYSE stocks?

Or is it the case that with sufficient liquidity i.e. average vol. of 500K/day, orders will usually get filled swiftly?

[DuaneG]

Hi John,

The answer to that question really depends on how you are setting the order up. If this is a market order where you are not specifying the exact price at which you wish to buy or sell, the trade should be filled within a few seconds. A market order is exactly that....an order at which you are willing to buy the ask or sell the bid (aka...market price).

In cases of a limit order, where you are specifying the exact price that you are willing to buy or sell, the fill may take anywhere from a few seconds to several minutes. This is where liquidity comes into play. A thinly traded stock may have a large spread and a shortage of buyers or sellers can affect the time it takes to get the order filled.

Limit orders are nice because you can clearly define the entry or exit price. The other side of this is that it can take some time for a particular stock trade up or down to your clearly defined level.