hard · Order Flow Analysis market-mechanics-execution
What is the primary risk of using 'Market Orders' during an absorption breakout in a high-latency retail environment?
- The initial 1--3 ticks of the move may be gone, resulting in poor risk-to-reward as you 'chase' the breakout.
- Using market orders signals to HFTs that you are a retail trader, leading to 'quote stuffing' against you.
- They do not appear in the footprint chart, making trade journaling impossible.
- Market orders are often rejected by the exchange's matching engine during high-volume events.
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