Trading 101 — Order Types: Fill or Kill (FOK)

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Trading Interface of a Financial Terminal

Fill or Kill (FOK) is a specific “Time in Force” order type that involves either the full instant execution of a trade or its cancellation. It is usually used when traders try to fill large orders on the spot and at a specific price and are not interested in partial fills (= everything or nothing, right away).

Pros: Useful for large volume orders fulfillment (Institutions and Funds). Can trigger hidden orders from opposite side.

Cons: Risks of no execution for high volumes in low liquidity markets. Difficulty to control buy/sell price efficiently.

Fill or Kill can be used in combination with limit and stop orders. In such case, they trigger only when a threshold is met and have to execute fully and nearly instantly or be cancelled).

FOK orders pay taker fees.

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