Fill-or-Kill Orders (FOK)

Definition

The term Fill-or-Kill refers to broker instructions to buy or sell a security immediately, and in its entirety, or cancel the order.  From a practical standpoint, a Fill-or-Kill order specifies the instruction will remain active for several seconds before being filled or canceled.

Explanation

Typically used when referring to stocks, a Fill-or-Kill (FOK) order instructs a broker to buy or sell a predetermined amount of securities in their entirety immediately or cancel the transaction.  A partial sale or purchase is not considered acceptable.  The order can only execute if a single transaction can cover all of the designated shares.

While an All-or-None order remains active until cancelled, a Fill-or-Kill order is cancelled immediately if the securities are not available.  FOK orders are usually large orders placed by institutional investors, typically paired with a limit or market order.  As it the case with Good-Til-Canceled, Fill-or-Kill specifies the term of the order.

Related Terms

All-or-NoneGood-Til-Canceled, Immediate-or-Cancel, stop order, National Best Offer, National Best Bid, market order, limit order, day order, One-Triggers-the-Other, One-Cancels-All, Time-in-Force