Why I moved to Moomoo!
I was using my Etrade account and noticed there were something strange with their order system. Not that Etrade's order system was any good before. I have used Etrade for over 10 years, and every time I use market order, I get screw more times than not. In the old days, I got a market filled with prices nowhere close to the listed price, l have experienced 20% off of ask. I have gotten filled with the worst price most of the time on Etrade. Where as in Moomoo, even with market order, I get a very fair filled. Now, the Etrade order system is even worst, it seems to have some AI behind it's order system to pump your price up or down. The ask price would move up, reacting to my input even before I submit my order. but once your order has been executed, it returns to normal. I wonder if there is any front running going on here?
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Trading is a tough business! All my commentary are my personal opinion. Do not follow my trades. You will lose money!
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Moomoo Lily : Hi, @Moomoo Buddy Please assist. Thanks!
Trytosaveabit : The only thing I can offer is I think different MM’s will use market orders to assist them in manipulating the Price! I noticed a big change in how MO get filled a couple months into Covid BS! I didn’t use it much but when I noticed more of what your saying! I since use Limit orders exclusively!
bullrider_21 : I have never used Etrade before. So I don't know.
MonkeyGee OP Trytosaveabit : I know. but when you see the bid and ask price stacked, you would think you get something within that range right. How would you get a price that is out from nowhere. That was 20 years ago, so I forgive them for that even though they couldn't explain it. Now, looking at order price reacting to my input before submitting is Ridiculous.
Trytosaveabit MonkeyGee OP : Again! Because of the disclaimer when using market order says, paraphrasing here ( no guarantee that it won’t fill below your price ). I know that this is very cynical! But i believe a market order gives corrupt MM’s to much leeway to use market orders for unseemly purposes! Again I could be way wrong? And I know I’m very cynical but just like the dark pool has moved so far from its original intent to corrupt use! JMO
黑云 : Mainly, I couldn't set up an heir when I died
Moomoo Buddy : Let's start by explaining how our market order works. We are extremely grateful for choosing moomoo.
A market order in moomoo does not need to specify a price, and it is bought or sold at the current market price.
Please note:
(1) When a market order is placed during the pre-market session, the system will put the order on hold and submit it to the exchange after the regular market trading begins. Although a market order can be entered during the post-market session, it may not be filled until the next regular trading session opens.
(2) Market orders do not guarantee a specific execution price.
(3) To prevent the execution prices of market orders from greatly deviating from expectations and causing losses, Moomoo Financial Inc. may temporarily deem the liquidity of some scenarios as insufficient and will therefore disable the placement of market orders. This will occur if at least one of the following data points is missing: best bid, best ask, or the transaction price of the day.
(4) Due to risk control, the price of a market order put on hold in the system is calculated as the current price * market order multiplier, and the market order multiplier is subject to adjustment by Moomoo Financial Inc. from time to time according to market conditions. Your buying power will be reduced accordingly. After the order is filled or canceled, the frozen part of your buying power will be released.
SpyderCall : The discrepancies in market order can be even more exaggerated when there is not a lot of liquidity in the name. Like for meme stonks and other equities that don't have a lot of active trading going on every second. This will sometimes lead to wide bid/ask spreads, which give horrible fill prices. I have been screwed by market orders plenty of times on a few platforms. Moomoo is one of the better ones.
DEFINITELY DONT USE MARKET ORDERS ON OPTIONS UNLESS THE BID/ASK SPREAD IS JUST A FEW DOLLARS APART. Spreads on options can be massive sometimes.
MonkeyGee OP SpyderCall : I'm fine getting filled anywhere between the bid and ask price. But I have seen fills that were completely out of nowhere. like the market is 40, the fill was 30. makes no sense. I never use market anymore with Etarde.
MooMamaLlama MonkeyGee OP : you know I've been noticing this same with etoro for cpl years.... watching a very still price change and the spread widen as soon as I go into trade options then reverting back.... also stop loss and buy set at same price (accounting for spread) the stop loss is triggered but no buy is executed - I experimented with tiny positions just to see what happened as was starting to think I was paranoid, but after this long I know I'm not. Market price is a lucky dip rip on etoro, Sounds the same with etrade?!
this doesn't seem a problem on moomoo though, market orders are filled fairly close to where you'd expect, often for better price if available.
this just doesn't happen on etoro, market orders fill at highest possible and often immediately fall after purchasing, spreads have crazy changes that 99% are not in your favour...
I get the makers and brokers are going to use spreads and changes to their favour, but it feels icky
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