Fill or Kill Order (FOK)

A Fill or Kill order is an order to buy or sell that must be executed immediately in its entirety at the set price or canceled altogether.

What Is a Fill or Kill Order?

Think of a Fill or Kill (FOK) order as a time-limited order. It’s a buy or sell order that must either be executed immediately in its entirety (fill) or automatically canceled (kill). 

Simply put, an FOK dictates the conditions for the expiry of an order a trader places, such as quantity and price. This means that the order will only be executed if the entire amount is matched. Failure to fill the order in its entirety immediately after it is submitted to the exchange, the system automatically cancels it entirely.

For instance, assume you intend to purchase 1 BTC at $60,000 at once rather than placing numerous, smaller buy orders. You can place multiple Fill or Kill buy orders for 1 BTC to different exchanges. This allows you to cancel any order that is not filled in its entirety– such as an order of 0.9 BTC at $60,000 – and only pay for the transaction if you get the 1 BTC you want.

What Characterizes FOK Orders?

FOK orders are useful when traders don’t want partial fulfillment or have a time-based demand. It allows them to place multiple orders on different exchanges without risking receiving partial fills. They can then cancel the remaining orders after one of the trades is filled in its entirety.

Therefore, FOK can be characterized by:

• Immediate execution – FOK orders are executed immediately after they are submitted.
• Price and quantity specificity – The trader specifies the exact amount of crypto they want, and their set price.
• All-or-nothing approach – Either the entire trade is filled at once, or canceled altogether.

What Are the Benefits of FOK Orders?

Some of the advantages FOK orders offer include:

• Preventing slippage – FOK orders minimize the risk of price slippage, where the volatility of crypto may cause the price to change unfavorably before the entire order is executed.
• Price control – It also ensures that you buy or sell crypto at a specified price, giving you better control over your desired entry or exit prices.
• Immediate execution – FOK orders are executed instantly. This allows traders to exploit fast-moving or illiquid market conditions while minimizing their exposure to price fluctuations.
• No partial fills – FOK orders offer traders a level of certainty, ensuring that you don’t end up with unwanted partial positions. You either get the exact amount of crypto you want at the price you want it at or don’t proceed with the trade at all.