Fill Ratio

Fill Ratio is a measure that indicates the percentage of an order or trade that has been executed or filled. It represents the portion of the desired quantity that has been successfully completed.

Fill Ratio is commonly expressed as a percentage and is calculated by dividing the filled quantity by the total requested quantity and then multiplying by 100.

Fill Ratio = (Filled Quantity / Total Requested Quantity) * 100

A high Fill Ratio indicates that a significant portion of the order has been filled, while a low Fill Ratio suggests that only a small portion of the order has been executed.

Fill Ratio is an important metric for traders and investors as it provides insights into the efficiency and effectiveness of their trading strategies. It helps them evaluate the success rate of their orders and assess their ability to execute trades at desired prices and quantities.

Several factors can influence the Fill Ratio of an order or trade:

1. Market Liquidity: The level of liquidity in the market can impact the Fill Ratio. In highly liquid markets, where there are many buyers and sellers, it is generally easier to fill orders completely. On the other hand, in illiquid markets, where there are fewer participants and limited trading volume, achieving a high Fill Ratio can be more challenging.

2. Order Type: The type of order placed can also affect the Fill Ratio. Market orders are designed to be executed quickly at the best available price, which generally results in a high Fill Ratio. Limit orders, on the other hand, specify a particular price at which the order should be executed. If the market does not reach the specified price, the order may not be filled or may only be partially filled, leading to a lower Fill Ratio.

3. Order Size: The size of the order relative to the available liquidity can impact the Fill Ratio. Larger orders may be more difficult to fill completely, especially in markets with limited liquidity. In such cases, partial fills or multiple executions at different prices may occur, resulting in a lower Fill Ratio.

4. Market Conditions: Market conditions, such as volatility and price movements, can also influence the Fill Ratio. During periods of high volatility, prices can change rapidly, and it may be challenging to fill orders at desired prices. Additionally, if there is a significant difference between the bid and ask prices, it can impact the Fill Ratio, especially for limit orders.

Monitoring the Fill Ratio can help traders evaluate the effectiveness of their trading strategies and make necessary adjustments. A consistently low Fill Ratio may indicate the need to modify the order placement approach, consider alternative strategies, or assess the market conditions more carefully.

In conclusion, Fill Ratio is a measure that indicates the percentage of an order or trade that has been filled. It is influenced by factors such as market liquidity, order type, order size, and market conditions. Monitoring the Fill Ratio helps traders assess the success rate of their orders and make informed decisions to improve their trading strategies.