Understanding The Fill Or Kill Trading Strategy At Fidelity

A fill or kill (FOK) order is a conditional type of time-in-force order used in securities trading that instructs a brokerage to execute a transaction immediately and completely or not at all. This type of order is most often used by active traders and is usually for a large quantity of stock. The order must be filled in its entirety or else be cancelled. A FOK order combines an all-or-none (AON) and immediate-or-cancel order (IOC).

Fill or Kill (FOK) is a conditional type of time-in-force order

A FOK is essentially an all-or-none (AON) and immediate-or-cancel order (IOC) combined. A FOK order combines an AON specification indicating it must be filled entirely with an IOC timeframe. A FOK order must be executed immediately at the market or a specified price or be cancelled if not filled. Typical FOK orders last a couple of seconds to minimise disruption to the stock's price and partial fills are not allowed.

The purpose of a FOK order is to ensure that an entire position is executed at prevailing prices in a timely manner. Without a FOK designation, it might take a prolonged period of time to complete a large order. Because such orders are typically placed for large quantities, prolonged execution of the order has the potential to cause significant changes to a stock's price and cause market disruption.

On some exchanges, a FOK should be executed within a few seconds of it being shown to the trading community. In this context, the market or limit order FOK is treated similarly to an "all or none" order with the exception that it is immediately cancelled if not completely filled. On other exchanges, a FOK is executed by filling the order with the number of shares that the first bid or offer makes available. Then, any unfilled balance of shares would be cancelled. In this context, the FOK is a way for a buyer or seller to fill what is possible, then cancel the rest.

In reality, however, the fill-or-kill type of trade does not occur very often. Other methods of instructing a brokerage on the time frame in which a trade is to be executed include immediate or cancel (IOC) which means to fill all or part of the order immediately, then cancel any part that cannot be filled, and good ‘til canceled (GTC), which keeps an order open until it is able to be filled at a specified price.

FOK orders must be executed immediately and entirely or not at all

A fill or kill (FOK) order is a conditional type of time-in-force order used in securities trading that instructs a brokerage to execute a transaction immediately and entirely, or not at all. FOK orders are typically used by active traders for large quantities of stock and are usually only valid for the current day.

FOK orders must be executed in their entirety or be cancelled (killed). They are essentially a combination of an all-or-none (AON) and an immediate-or-cancel (IOC) order. A FOK order must be filled immediately at the market or a specified price, or else be cancelled.

FOK orders are used to ensure that an entire position is executed at prevailing prices in a timely manner. Without this type of order, it might take a prolonged period to complete a large order. As these orders are usually for large quantities, a prolonged execution has the potential to cause significant changes to a stock's price and cause market disruption.

FOK orders typically last a few seconds to minimise disruption to the stock's price and partial fills are not allowed.

FOK orders are usually for a large quantity of stock

Fill or Kill (FOK) is a conditional type of time-in-force order used in securities trading that instructs a brokerage to execute a transaction immediately and completely or not at all. This type of order is most often used by active traders and is usually for a large quantity of stock. The order must be filled in its entirety or else canceled (killed).

A FOK order combines an all-or-none (AON) and immediate-or-cancel order (IOC). AON indicates that the order must be filled entirely, while IOC indicates that the order must be completed immediately. FOK orders typically last a few seconds to minimize disruption to the stock's price, and partial fills are not allowed.

The purpose of a FOK order is to ensure that an entire position is executed at prevailing prices in a timely manner. Without a FOK designation, it might take a prolonged period to complete a large order. Because such orders are typically placed for large quantities, prolonged execution of the order has the potential to cause significant changes to a stock's price and cause market disruption.

FOK orders are not allowed for use with stop loss or stop limit sell requests

A fill or kill (FOK) order is a time-in-force restriction that can be placed on the execution of a sell request. It requires that the sell request is completed in its entirety immediately or is cancelled. FOK orders are not allowed for use with stop loss or stop limit sell requests. This is because FOK orders are only used under very special circumstances and are not suitable for general use.

FOK orders are usually reserved for large quantities of stock and are often used by active traders. They are essentially a combination of an all-or-none (AON) order and an immediate-or-cancel (IOC) order. A FOK order must be filled in its entirety, or else it is cancelled (killed). They are designed to ensure that an entire position is executed at prevailing prices in a timely manner. Without an FOK designation, it could take a long time to complete a large order, which could cause significant changes to a stock's price and disrupt the market.

FOK orders typically last a couple of seconds to minimise disruption to the stock's price and partial fills are not allowed. They are not very common, with immediate-or-cancel (IOC) and good 'til canceled (GTC) orders being more frequently used to instruct a brokerage on the timeframe in which a trade is to be executed.

FOK orders are only used under very special circumstances

FOK orders are essentially a combination of an all-or-none (AON) and an immediate-or-cancel (IOC) order. They are used to ensure that an entire position is executed at prevailing prices in a timely manner. Without the FOK designation, it might take a prolonged period to complete a large order. Given that such orders are usually for large quantities, a prolonged execution could cause significant changes to a stock's price and cause market disruption.

FOK orders typically last a few seconds to minimise disruption to the stock's price and partial fills are not allowed.

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