In What Scenario Would a Trader Prefer an FOK Order over an IOC Order? ▴ Learn

In What Scenario Would a Trader Prefer an FOK Order over an IOC Order?

A trader would prefer a Fill-or-Kill (FOK) order when the entirety of the order must be executed immediately and at the specified limit price or better, with no partial fills accepted. This is common for large block trades where the trader wants to avoid the complexity of managing residual quantities or the risk of only a small portion being filled.

An IOC order is preferred when partial fills are acceptable, and the trader only wants to secure the immediate, available liquidity.

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