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Advanced Trading: Fill or Kill Orders

Jan 08, 2020
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byNDAX Labs

A Fill or Kill Order (FOK) is a trade that executes immediately and entirely at a certain price, but if it cannot fill the entire order immediately, then it will be canceled entirely. This type of order is most often used by active traders, a FOK order is most often used when trading for a large quantity of cryptocurrency. The order must be entirely filled, or it will be killed.

A fill or kill order can help ensure that a trader’s position is entered at the trader’s desired price. Using a fill or kill designation, traders can reduce the risk of a large order taking a prolonged period of time to complete. Prolonged periods of execution can cause significant changes to a cryptocurrency’s price, which can lead to unpredicted losses or gains.

Example of Fill or Kill Order

  • Assume an investor wants to purchase 20 Bitcoin at a selling price of $10,000. If the investor wants to buy exactly 20 Bitcoin, and no fewer, at $10,000 (or better), a fill or kill order should be placed. If an exchange only has 10 Bitcoin selling for $10,000, then the order would be killed. If the exchange is willing to sell 20 Bitcoin but only for a price of $10,001, then the order would be killed.
  • However, if the seller is      willing to sell 20 Bitcoin at $10,000, the order would be filled      immediately and completely. If the seller is willing to sell 20 Bitcoin at      a better price, say $9,999, then the order would also be filled.

How to Place a Fill or Kill Order on NDAX

  • Login to https://ndax.io/
  • Once you log in you will be redirected to your dashboard
  • Click TRADE on the left-hand side of the screen
  • On the trade page, click BUY (Green button) or SELL (Red Button) on the right side of the screen
  • Click the small GREY ARROW in the upper left corner of the screen to pick the CRYPTOCURRENCY/CAD pair.
  • Click the small GREY ARROW on the pop-up to display the dropdown list of Advanced trade orders.
  • Click on FILL or Kill
  • ENTER ORDER SIZE
  • ENTER LIMIT OFFSET
  • Click PLACE BUY/SELL ORDER
Buy fill or kill order
Sell Fill or Kill order