Fill or Kill (FOK) Orders

Fill or Kill (FOK) orders are market or limit orders which are either completely filled or are not filled at all. FOK orders are practiced to attain certain goals and are not so widely practiced. Fill or Kill orders are mainly placed by day traders and scalpers who wish to immediately buy a large number of stocks at a certain price and/or by arbitrators who want to complete more than one transaction simultaneously.

FOK orders are filled immediately by the broker if the entire quantity of instruments can be matched, if not the orders are automatically cancelled (killed). Not all brokers and markets accept Fill or Kill orders and many brokers have restrictions in placing these orders like 1) the order must be equal (or exceed) a certain number of stocks, 2) orders can be only placed at market hours, 3) these orders are not allowed at/near market closing, 4) the orders cannot be stop or short orders, etc. Often FOK is considered as a restricted order than useful trading tool.

FOK order is similar to All or None (AON) orders and Immediate or Cancelled (IOC) orders. But AON orders are not cancelled immediately if it is entirely filled.

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