as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
system
is there a significant danger to market orders as opposed to limit orders?
user
the risk of market orders depends heavily on the size of the market and the exchange. on big exchange and a security which is traded in hue numbers you're likely that there are enough participants to give you a "fair" price. doing a market order on a security which is hardly dealed you might make a bad deal. in germany tradegate exchange and the sister company the bank tradegate ag are known to play a bit dirty: their market is open longer than frankfurt (xetra) and has way lower liquidity. so it can happen that not all sell or buy orders can be processes on the exchange and open orders are kept. then tradegate ag steps in with a new offer to full-fill these trades selling high or buying low. there is a german article going in details on wiwo.de either german or via google translate
assistant