Match each specific order execution qualifier on the left with its correct trading rule and execution constraint on the right.
- Fill-or-Kill (FOK)Requires immediate execution of the entire quantity; if the full order cannot be filled immediately, the entire order is canceled.
- Immediate-or-Cancel (IOC)Requires immediate execution of as much of the order as possible; any unexecuted portion is immediately canceled.
- All-or-None (AON)Requires the full order quantity to be executed if filled, but does not require immediate execution and can remain active as a Day or GTC order.
- Market-on-Close (MOC)Executes at or as close as possible to the official closing price of the trading day.
Answer
Fill-or-Kill (FOK) pairs with immediate full execution or cancellation; Immediate-or-Cancel (IOC) pairs with immediate execution allowing partial fills; All-or-None (AON) pairs with full execution requirement without immediate execution constraint; Market-on-Close (MOC) pairs with execution near the market close.
Each order execution qualifier serves a specific function regarding timing and fill completeness: Fill-or-Kill (FOK) demands an immediate complete fill or cancellation; Immediate-or-Cancel (IOC) allows partial execution immediately and cancels the balance; All-or-None (AON) insists on a full fill but allows time to achieve it; Market-on-Close (MOC) targets execution at the close of trading.
Step-by-Step Solution
Key Concept
Order Qualifiers and Execution Instructions