Definition
The term Fill-or-Kill refers to broker instructions to buy or sell a security immediately, and in its entirety, or cancel the order. From a practical standpoint, a Fill-or-Kill order specifies the instruction will remain active for several seconds before being filled or canceled.
Explanation
Typically used when referring to stocks, a Fill-or-Kill (FOK) order instructs a broker to buy or sell a predetermined amount of securities in their entirety immediately or cancel the transaction. A partial sale or purchase is not considered acceptable. The order can only execute if a single transaction can cover all of the designated shares.
While an All-or-None order remains active until cancelled, a Fill-or-Kill order is cancelled immediately if the securities are not available. FOK orders are usually large orders placed by institutional investors, typically paired with a limit or market order. As it the case with Good-Til-Canceled, Fill-or-Kill specifies the term of the order.
Related Terms
The term All-or-None order refers to broker instructions to buy or sell a quantity of securities in their entirety, or none at all. If an All-or-None order cannot be executed immediately, it remains open until it is executed or is closed at the end of the trading day.
Moneyzine EditorJanuary 5th, 2024
The term Good-Til-Canceled refers to broker instructions to buy or sell a security at a fixed price, and the order will remain active until the investor cancels it or it is filled. From a practical standpoint, a Good-Til-Canceled order specifies the instruction will remain active even if it is not filled on the same trading day.Moneyzine EditorJanuary 19th, 2024
The term Immediate-or-Cancel refers to broker instructions to buy or sell a security instantly, or cancel the order. From a practical standpoint, an Immediate-or-Cancel order specifies the instruction will remain active for several seconds before being filled or canceled.Moneyzine EditorJanuary 19th, 2024- The term stop order refers to instructions sent to a broker to buy or sell securities once the security reaches a specified price. When the price point on a stop order is reached, it is converted to a market order.Moneyzine EditorSeptember 21st, 2023
- The term National Best Offer refers to the lowest available ask price, which is a consolidated value from all of the national stock exchanges. The National Best Offer is the lowest price sellers are willing to accept for a security such as a stock.Moneyzine EditorSeptember 20th, 2023
- The term National Best Bid refers to the highest available bid price, which is a consolidated value from all of the national stock exchanges. The National Best Bid is the maximum price buyers are willing to pay for a security such as a stock.Moneyzine EditorSeptember 20th, 2023
The term market order refers to instructions sent to a broker to buy or sell a security immediately at the best available price. Since there are no restrictions on the selling or purchase price of the security, a market order is oftentimes immediately executed.Moneyzine EditorJanuary 24th, 2024
The term limit order refers to instructions sent to a broker to buy or sell securities at a specific price or better. Since a limit order is not a market order, there is no guarantee the transaction will occur.Moneyzine EditorJanuary 23rd, 2024
The term day order refers to broker instructions to buy or sell a security that automatically expires at the end of the trading day if not executed. Unless specified by the investor, the default orders to buy and sell stocks at most brokerage houses are day orders.Moneyzine EditorJanuary 15th, 2024- The term One-Triggers-the-Other refers to instructions sent to a broker that consist of a primary order and a secondary order, which becomes active only if the primary order is executed. One-Triggers-the-Other orders can save a trader time, since they can pair together an order to purchase stock at a certain price and sell it at another.Moneyzine EditorSeptember 20th, 2023
- The term One-Cancels-All refers to instructions sent to a broker that consist of several active limit orders; in the event one is filled, the remaining orders are automatically inactivated. One-Cancels-All provides traders with the ability to select from one of several stocks at their desired strike price.Moneyzine EditorSeptember 20th, 2023
- The term Time-in-Force refers to broker instructions that indicate how long an order will remain active before it expires or is executed. Time-in-Force orders provide investors with a mechanism to control the duration parameter for a trade.Moneyzine EditorSeptember 21st, 2023
