FOK it!

Discussion in 'Order Execution' started by peilthetraveler, Sep 8, 2011.

  1. FOK (fill or kill).

    Does anyone remember these orders? Its been a long time since I heard it and was wondering if people still use these orders or not. I remember floor traders that would do fill or kill orders and just keep buying and buying and when they got too much they would just say "ok kill these ones" and they would keep the others.

    Does anyone know if fill or kill orders are still done or is that part of a generation past?
  2. Ya still around but not generally used by traders. Mainly for large blocks. A partially filled order might leave an investor with a small quantity that is not worth the admin overhead of holding or the costs of selling
  3. Or you don't want someone putting in small orders against your size to ping for liquidity.
  4. Much more relevant reason for today.....
  5. They are commonly used by HFT strategies subject to minimum liquidity requirements across legs and assets.