How to Ensure Small Orders Are Filled on TradersPost

Small orders, especially those placed with stop-limit settings, sometimes fail to execute as expected, which can be frustrating and potentially costly for traders. This guide explains why this happens, the difference between various order types, and tips for improving execution on small orders.

Why Small Orders Sometimes Don’t Fill

A common scenario for missed fills involves using stop-limit orders with the same price for both the stop and the limit. In such cases, by the time the stop triggers, the price may already have moved beyond the limit, leading to an unfilled order. This is especially likely in fast-moving or low-liquidity markets, where prices can quickly pass a specific level before the system can execute the limit order.

Recommended Order Types for Better Fill Rates

1. Stop Market Orders: These orders ensure execution by converting to a market order once the stop price is reached. They are popular among traders who prioritize exiting a position over achieving a specific fill price, as stop market orders are not subject to the same risk of missing the fill as stop-limit orders. However, they can lead to slippage, especially in thin markets.

2. Stop-Limit Orders with a Buffer: For those using stop-limit orders, setting the limit slightly lower than the stop price (for sell orders) or slightly higher (for buy orders) allows for a margin, reducing the risk of the price moving past the limit without execution. This “buffer” provides extra flexibility that can help capture the fill.

3. Splitting Orders Across Multiple Limits: In thin or volatile markets, splitting a large order into several smaller limit orders can improve the chances of partial fills, minimizing the impact of price jumps. This approach requires close monitoring and may work best in actively traded securities.

Choosing the Right Order Type

Understanding the difference between order types is essential for optimizing trade execution:

• Stop Orders: Trigger a market order once a set price is reached, ensuring execution but with a risk of slippage.

• Limit Orders: Execute only at the specified price or better, but with no guarantee of execution.

• Stop-Limit Orders: Combine both features, but risk missing the fill if the price moves past the limit before execution.

Conclusion

For TradersPost users dealing with small orders, choosing the appropriate order type and setting a buffer for stop-limit orders can increase the likelihood of fills. Understanding the nuances of stop, limit, and stop-limit orders is essential for improving execution rates, especially in fast-moving or low-liquidity markets.