When setting an order, a trader can choose different “Time in Force” strategies to set the effective execution method of the order. Order execution strategies allow traders to have more control over their trading strategies.
Coinlocally offers three different “Time in Force” order execution strategies for limit orders:
- Good Till Cancelled (GTC): The order will remain valid until it is fully executed or manually cancelled by the trader. GTC is suitable for traders who are willing to wait for all contracts to be completed at a specified price and can flexibly cancel unconcluded contracts at any time.
Example: You place a limit buy order for BTC at $60,000. It stays open until either: The price reaches $60,000 and your order is filled, or You manually cancel it.
- Immediate or Cancel (IOC): The order must be filled immediately at the order limit price or better. If the order cannot be filled immediately, the unfilled contracts will be cancelled. IOC is usually used to avoid large orders being executed at a price that deviates from the ideal price. With this set, the contracts that fail to trade at the specified price will be cancelled.
Example: You place an IOC buy order for 1 BTC at $60,000. If only 0.4 BTC is available at that price, it buys 0.4 BTC and cancels the remaining 0.6 BTC.
- Fill or Kill (FOK): The order must be immediately executed at the order price or better, otherwise, it will be completely cancelled and partially filled contracts will not be allowed. This execution strategy is more commonly used by scalping traders or day traders looking for short-term market opportunities.
Example: You place a FOK buy order for 1 BTC at $60,000. If there’s not a full 1 BTC available at that price instantly, the order is completely canceled. No partial fills.
Which One Should You Use?
- GTC: When you’re willing to wait for the market to meet your price.
- IOC: When you want to get as much of the order filled as possible right away, and you’re fine with canceling the rest.
- FOK: When you need the entire order filled immediately, or not at all.
Note: If you quit Time in Force, Good Till Canceled (GTC) will be executed by default.