Fill or Kill Trading Orders

A Fill or Kill order can be placed with a financial broker when buying a security. This is commonly used in the stock market, commodities market and Forex market. With this type of order, the buyer specifies that the entire amount of the order must be filled or the broker is to disregard the order entirely. The buyer does not want any partial order fills for this particular order. In many cases, if you do not specify the type of order, and there is not enough of a particular security to fill the order completely, the broker will make a partial fill at that price. This might provide you with only a fraction of the amount of securities that you want to purchase. A Fill or Kill order differs from immediate or cancel orders in that immediate or cancel orders allow partial executions. The Fill or Kill order in stock trading is an exchange that will never trade partially. It can be very useful when someone wants to buy or sell immediately, but the standard market order is too dangerous (because of possible price fluctuation), as a limit FOK trade will only act if it can immediately fill at the set price or better, which means that it will cancel if it cannot buy or sell all shares at a price that is satisfactory to the investor who set the order.

Tags: stock, trading, basics, investor, market, fill-or-kill, broker