At 10:00 AM Tuesday, you want to place an order to 1000 shares of XYZ stock. You want the entire order to fill right away, otherwise you don't want it. Create the buy order, select an order type from the Type field (in this example, we've chosen a limit order), and select FOK as the time in force. If the entire order does not fill immediately once it is accepted by the market, the entire order is canceled.
Assumptions
Action
BUY
Qty
1000
Order Type
LMT
Market Price
13.50
Limit Price
13.50
Time in Force
FOK
Order Type In Depth - Fill or Kill Buy Order
Step 2 – Buy Order for 1000 Shares Transmitted
You've transmitted your limit order with the time in force set to Fill or Kill. If the entire order does not fill immediately once it is accepted by the market, the entire order will be canceled.
Assumptions
Action
BUY
Qty
1000
Order Type
LMT
Market Price
13.50
Limit Price
13.50
Time in Force
FOK
Order Type In Depth - Fill or Kill Buy Order
Step 3 – Order is Filled Immediately
Your limit price and the market price of XYZ are the same, 13.50, when you transmit the order. Your entire order is immediately filled.
Assumptions
Action
BUY
Qty
1000
Order Type
LMT
Market Price
13.50
Limit Price
13.50
Time in Force
FOK
Order Type In Depth - Fill or Kill Buy Order
Alternate Scenario – Market Price Moves Away from Limit Price, Order Cannot Be Filled Immediately
In this alternate scenario, the market price of XYZ rises to 13.51, away from your limit price of 13.50. Your entire order cannot be immediately filled so it is canceled.
Assumptions
Action
BUY
Qty
1000
Order Type
LMT
Market Price
13.51
Limit Price
13.50
Time in Force
FOK
Note: Any stock or option symbols displayed are for illustrative purposes only and are not intended to portray a recommendation.
