Fill-Or-Kill (FOK)

Fill-Or-Kill (FOK) is a type of order used in trading that requires the entire order to be executed immediately in its entirety or not at all. If the order cannot be filled completely at the moment it is placed, it is canceled outright. This order type is particularly advantageous for traders who want to ensure that they either obtain the full quantity of an asset they are seeking or do not engage in the trade at all. 

The defining characteristic of an FOK order is its all-or-nothing nature. When a trader places a Fill-Or-Kill order, they are signaling their intention to execute the trade at a specific price without accepting partial fills. This is especially useful in scenarios where liquidity is low or when the trader is looking for a specific price point that must be met to justify the trade. 

For instance, if a trader submits a FOK order to buy 200 shares of a stock at a specific price and only 150 shares are available at that price, the entire order will be canceled since it was not filled completely. This prevents the trader from being left with an incomplete position, which may not align with their trading strategy. 

FOK orders are often utilized by institutional traders and those engaged in high-volume trading, as they provide a clear and decisive way to enter or exit positions without the risk of partial fills. Overall, Fill-Or-Kill orders offer a straightforward approach for traders who prioritize certainty and control in their trading activities.