Limit vs Market Entries for Scalping: Cost, Fill Rate and Missed Trades

[FXS Prop Desk]

The choice between limit and market orders shapes a scalper's costs more than most indicator choices.

Market orders: guaranteed fill, but you pay the spread and possible slippage. Good when the move starts immediately.

Limit orders: better price, no negative slippage, but no guarantee of a fill. The missed trades are often the best ones, because price never came back.

A fair comparison needs data on both:

• Average cost per market fill (spread + slippage).
• Fill rate of limit orders, and the result of the trades that did not fill.

Some traders use a hybrid: a limit order 0.2–0.5 pips better than the current price, cancelled after a few seconds and replaced by a market order if the setup is still valid.

Which order type do you use for entries, and have you compared the costs?