Fill or Kill (FOK) is a type of market order in stable trading. This order requires the trade to be executed immediately if the market price reaches the specified price in the order. If the trade cannot be executed at the specified or better price, the order is immediately canceled. Any portion of the order that can not be executed immediately is canceled.
Immediate or Cancel (IOC) is another type of market order in stable trading. In this order, any portion that can not be immediately executed is canceled. This means the order is either fully executed at the specified price or canceled if immediate execution is not possible.
- For example:
When using an Fill or Kill (FOK) market order, suppose you want to buy 1000EURT priced in USDT, specifying a price of 1.20USDT per EURT. If the actual market price reaches or goes below 1.20USDT, your order will be fully executed at the specified price, buying 1000EURT. However, if the market price is higher than 1.20USDT, the order will be immediately canceled without any partial execution.
On the other hand, suppose you use a Immediate or Cancel (IOC) market order to sell 500EURT priced in USDT, specifying a price of 1.25USDT per EURT. If the market price reaches or goes below 1.25USDT, your order will be fully executed at the specified price, selling 500EURT. If the market price is higher than 1.25USDT, the order will be immediately canceled without any partial execution.
These are the explanations of Fill or Kill (FOK) and Immediate or Cancel (IOC) market orders in stable trading.