What Is a Fill or Kill Order?

A fill or kill order can be placed with a financial broker when buying a security. This is commonly used in the stock market, commodities market and forex market.

With this type of order, the buyer specifies that the entire amount of the order must be filled or the broker is to disregard the order entirely. The buyer does not want any partial order fills for this particular order.

In many cases, if you do not specify the type of order, and there is not enough of a particular security to fill the order completely, the broker will make a partial fill at that price. This might provide you with only a fraction of the amount of securities that you want to purchase.

This type of order is commonly used in transactions that involve purchasing large numbers of securities. For example, if you wanted to buy 20,000 shares of a particular stock, at a particular price, you might want to use a fill or kill order so that you do not end up with only 5000 shares of the stock at that price. Not getting a full order could affect your investment strategy in a way that you would dissatisfy you.

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