Crossing the spread versus waiting: the true price of speed
Posted: Sat Oct 31, 2026 8:18 pm
Every market order pays the spread. Every limit order that fills avoids it, but risks missing the trade. Choosing between them is a trade-off between cost and certainty.
A scalper entering at market gives up half the spread on the way in and half on the way out. With a 0.8 pip spread, that's the full 0.8 per round trip. A limit entry and a limit exit could capture some of it, if they fill.
The question is what fills are missed. If the setups that get missed are the best ones, the savings are illusory. Strong moves go away without waiting.
A hybrid approach exists. Use limit orders for entries in ranging conditions where price is likely to return, and market orders for momentum entries where speed matters more than cost.
Measuring what proportion of limit orders fill, and how the missed trades would have performed, gives a data-based answer.
For fast systems, speed usually wins. For slow ones, patience pays.
Which approach fits your setups, and how many fills do you miss?
A scalper entering at market gives up half the spread on the way in and half on the way out. With a 0.8 pip spread, that's the full 0.8 per round trip. A limit entry and a limit exit could capture some of it, if they fill.
The question is what fills are missed. If the setups that get missed are the best ones, the savings are illusory. Strong moves go away without waiting.
A hybrid approach exists. Use limit orders for entries in ranging conditions where price is likely to return, and market orders for momentum entries where speed matters more than cost.
Measuring what proportion of limit orders fill, and how the missed trades would have performed, gives a data-based answer.
For fast systems, speed usually wins. For slow ones, patience pays.
Which approach fits your setups, and how many fills do you miss?