Scalping Execution Strategy: Bid vs Ask for 5-15 Minute Trades

The Reddit discussion reveals a clear consensus among active scalpers that execution certainty outweighs spread savings for 5-15 minute trades. Most traders advocate for market orders or hitting the ask to avoid missing profitable moves, with the sentiment that “missing a fill hurts more than paying a small spread” especially on 10+ minute holds[1].

Key Reddit insights:

• Speed over savings
  : Traders like Doctor_Raymos and Mayhem370z insist on always buying the ask/selling bid for fastest fills and better leverage
• Context-dependent approach
  : Infamous-Bunch-2366 advises hitting the ask in thin liquidity or widening spreads, but sitting near mid or on the bid in clean, high-volume setups
• Futures advantage
  : Nick_OS_ notes that with high liquidity in futures, entries matter less except on news prints
• Successful bid-limit strategy
  : Tag82 reports success buying the bid on SPY 0DTE using Webull chart-based order bars, generating interest from other traders
• Platform frustration
  : The OP (MarketMaker007) specifically mentioned wide spreads at Tastytrade as a concern

Market microstructure research confirms the Reddit consensus, showing that informed traders typically use more aggressive order types to capture alpha before price movements[2]. The bid-ask spread represents the cost of immediacy, with scalpers needing to overcome this spread to achieve profitability[3].

Execution quality varies significantly by broker:

• Tastytrade
  : Achieves 98.41% execution quality for 1-499 share orders with proprietary smart order routing, but accepts PFOF which may introduce slight delays[4]
• Interactive Brokers
  : Generally outperforms Tastytrade for advanced order routing and institutional-grade execution[5]
• Speed requirements
  : Under 10ms latency is considered ideal for effective scalping strategies[6]

For options-focused scalping, Tastytrade excels with specialized tools like SmartSpread AI module and competitive commission structure ($1 to open, no fee to close)[7]. However, for high-frequency equity scalping, non-PFOF brokers may provide superior execution.

The Reddit trader consensus aligns well with market microstructure theory. Both sources agree that:

1. Execution speed is critical
   for 5-15 minute scalps
2. Fill certainty often outweighs spread savings
   in fast-moving markets
3. Liquidity conditions determine optimal strategy
   - bid-limit orders work in high-volume setups like SPY 0DTE, while market orders excel in thinner markets

The main divergence lies in platform preferences. While Reddit traders express frustration with Tastytrade’s spreads, research shows Tastytrade actually has strong execution quality (98.41%) but may have slight PFOF-related delays. This suggests the perceived spread issues may be more about market conditions than platform limitations.

• PFOF brokers like Tastytrade may have execution delays that matter for ultra-short scalps
• Bid-limit strategies can result in missed opportunities during fast moves
• Wide spreads during volatile periods can erode scalping profitability

• Hybrid strategies using bid-limit orders in high-liquidity conditions (SPY 0DTE) and market orders in thin markets
• Platform optimization based on trading style - Tastytrade for options scalping, Interactive Brokers for high-frequency equity trades
• Advanced order types that balance price improvement with fill probability

Consider using bid-limit orders when trading SPY 0DTE or other high-liquidity instruments during normal market conditions, but switch to market orders during news events or in less liquid securities to ensure execution.