medium · Order Flow Analysis market-mechanics-execution

What is the primary risk of using a 'Market Order' to enter an 'Absorption Breakout' trade in a volatile market like Crude Oil?

  1. The breakout might turn into 'Unfinished Business' at the high.
  2. Slippage can significantly degrade the trade's risk-to-reward ratio.
  3. The exchange might reject the order if the bid-ask spread is too wide.
  4. Market orders do not contribute to the 'Cumulative Delta' chart.

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