Fill or Kill Orders

Setting FOK as the time in force dictates that the entire order must execute immediately or be canceled. A trader might see a short-lived opportunity to buy or sell an option that would suit a strategy or fit within a portfolio. However, the time opportunity might be subject to buying or selling a minimum number contracts. The fill-or-kill order type is designed to ensure that the investor does not receive a partial fill that would not suit his current appetite. Failure to fill the entire order upon immediate submission to the market causes the system to cancel the order in its entirety.

Notes:

The Reference Table to the upper right provides a general summary of the order type characteristics. The checked features are applicable in some combination, but do not necessarily work in conjunction with all other checked features. For example, if Options and Stocks, US and Non-US, and Smart and Directed are all checked, it does not follow that all US and Non-US Smart and direct-routed stocks support the order type. It may be the case that only Smart-routed US Stocks, direct-routed Non-US stocks and Smart-routed US Options are supported.

Products	Availability	Routing	TWS
Options	US Products	Smart	Attribute
	Non-US Products	Directed	Order Type
			Time in Force
View Supported Exchanges\|Open Users' Guide

Example

Order Type In Depth - Fill or Kill Buy Order

Step 1 – Enter a Fill or Kill Buy Order

At 10:00 AM Tuesday, you want to place an order to 1000 contracts of XYZ option. 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.

Step 2 – Buy Order for 1000 Contracts 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.

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

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

Interactive Brokers Canada Inc. is a member of the Canadian Investment Regulatory Organization (CIRO) and Member - Canadian Investor Protection Fund. Know Your Advisor: View the CIRO AdvisorReport. Trading of securities and derivatives may involve a high degree of risk and investors should be prepared for the risk of losing their entire investment and losing further amounts. Using borrowed money to finance the purchase of securities involves greater risk than using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines. Interactive Brokers Canada Inc. is an order execution-only dealer and does not provide investment advice or recommendations regarding the purchase or sale of any securities or derivatives. Our registered office is located at 1800 McGill College Avenue, Suite 2106, Montreal, Quebec, H3A 3J6, Canada.

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