An investor is reviewing order execution qualifiers with a registered representative prior to placing large equity transactions. Which of the following statements correctly compare Fill-or-Kill (FOK) and Immediate-or-Cancel (IOC) orders?
- Both FOK and IOC orders mandate immediate execution upon routing to the trading venue.Cevap
- An IOC order permits partial execution with the remaining balance canceled, whereas a FOK order requires the entire order quantity to be filled or canceled in full.Cevap
- CIf a FOK order cannot be executed immediately in full, the unexecuted shares remain active as a Day order until market close.
- DBoth FOK and IOC order types allow the remaining unexecuted shares to be automatically converted into Good-'Til-Canceled (GTC) limit orders.
Cevap
The correct statements are that both Fill-or-Kill (FOK) and Immediate-or-Cancel (IOC) orders mandate immediate execution upon reaching the trading venue, and that an IOC order permits partial fills while a FOK order requires complete execution or cancellation.
Both Fill-or-Kill (FOK) and Immediate-or-Cancel (IOC) orders demand an immediate execution attempt upon entry. The key distinction lies in partial fills: an IOC order permits partial execution and cancels the unexecuted remainder, while a FOK order must be executed in full immediately or canceled completely.
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Order Execution Qualifiers (FOK vs. IOC Mechanics)