Fill Or Kill Order (FOK)

A Fill or Kill Order (FOK) is a type of order used in financial markets, including forex, to execute a trade immediately and completely or cancel it if it cannot be filled entirely.

When placing a FOK order, traders specify the quantity and price at which they want to buy or sell a financial instrument. The order is then sent to the market, and if the requested quantity can be filled at the specified price, the entire order is executed. However, if the requested quantity cannot be filled immediately and completely, the order is canceled, and no partial fills are allowed.

FOK orders are typically used when traders want to ensure that their orders are filled immediately and in full at a specific price level. This can be useful in volatile market conditions or when traders want to take advantage of short-term price movements.

It’s important to note that FOK orders may have stricter execution requirements compared to other order types. If the requested quantity cannot be filled entirely, the order is canceled, and no partial fills are allowed. This means that if there is insufficient liquidity in the market or the price moves away from the specified level, the order will not be executed at all.

Traders should consider their trading strategy, market conditions, and the liquidity of the instrument they are trading when deciding to use a FOK order. It can be a useful tool for quick and precise execution, but it also carries the risk of not being filled at all if the market conditions are unfavorable.

In summary, a Fill or Kill Order (FOK) is a type of order that requires immediate and complete execution at a specified price level. If the requested quantity cannot be filled entirely, the order is canceled. Traders use FOK orders to ensure quick and precise execution, but they should consider market conditions and liquidity before using this order type.