Fill or Kill Orders
Setting FOK as the time in force dictates that the entire order must execute immediately or be canceled. A trader might see a short-lived opportunity to buy or sell an option that would suit a strategy or fit within a portfolio. However, the time opportunity might be subject to buying or selling a minimum number contracts. The fill-or-kill order type is designed to ensure that the investor does not receive a partial fill that would not suit his current appetite. Failure to fill the entire order upon immediate submission to the market causes the system to cancel the order in its entirety.
Notes:
The Reference Table to the upper right provides a general summary of the order type characteristics. The checked features are applicable in some combination, but do not necessarily work in conjunction with all other checked features. For example, if Options and Stocks, US and Non-US, and Smart and Directed are all checked, it does not follow that all US and Non-US Smart and direct-routed stocks support the order type. It may be the case that only Smart-routed US Stocks, direct-routed Non-US stocks and Smart-routed US Options are supported.
| Products | Availability | Routing | TWS | ||||
|---|---|---|---|---|---|---|---|
| Options | US Products | Smart | Attribute | ||||
| Non-US Products | Directed | Order Type | |||||
| Time in Force | |||||||
| View Supported Exchanges|Open Users' Guide | |||||||
Example
Order Type In Depth - Fill or Kill Buy Order
Step 1 – Enter a Fill or Kill Buy Order
At 10:00 AM Tuesday, you want to place an order to 1000 contracts of XYZ option. You want the entire order to fill right away, otherwise you don't want it. Create the buy order, select an order type from the Type field (in this example, we've chosen a limit order), and select FOK as the time in force. If the entire order does not fill immediately once it is accepted by the market, the entire order is canceled.
Step 2 – Buy Order for 1000 Contracts Transmitted
You've transmitted your limit order with the time in force set to Fill or Kill. If the entire order does not fill immediately once it is accepted by the market, the entire order will be canceled.
Step 3 – Order is Filled Immediately
Your limit price and the market price of XYZ are the same, 13.50, when you transmit the order. Your entire order is immediately filled.
| Assumptions | |
|---|---|
| Action | BUY |
| Qty | 1000 |
| Order Type | LMT |
| Market Price | 13.50 |
| Limit Price | 13.50 |
| Time in Force | FOK |
Alternate Scenario – Market Price Moves Away from Limit Price, Order Cannot Be Filled Immediately
In this alternate scenario, the market price of XYZ rises to 13.51, away from your limit price of 13.50. Your entire order cannot be immediately filled so it is canceled.
| Assumptions | |
|---|---|
| Action | BUY |
| Qty | 1000 |
| Order Type | LMT |
| Market Price | 13.51 |
| Limit Price | 13.50 |
| Time in Force | FOK |