Time-In-Force (TIF) plays a crucial role in determining how long an order remains active before it is executed or canceled.
The following are the 3 most common TIFs that exchanges are using:
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GTC (Good Till Cancel):
Remains active until it is either fully executed or canceled manually.
This is commonly seen in maker limit orders, where the order is submitted to increase liquidity of the order book.
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IOC (Immediate Or Cancel): This order requires immediate execution at the limit price or better. If the order cannot be fully executed immediately, any remaining portion will be cancelled.
This is commonly seen in market orders or taker limit orders, where the order is submitted to take liquidity out from the order book.
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Fill-Or-Kill (FOK): FOK orders are designed to execute in full immediately upon placement. If the order cannot be filled of the entire quantity, it will be cancelled entirely.
This is commonly seen in market orders or taker limit orders, where the order is submitted to take liquidity out from the order book.
In Flipster, market orders and trigger orders (in the form of conditional market orders) are used along with Fill-Or-Kill. Hence, it is essential for users to note that it is common for orders (including Take Profit and Stop Loss orders) to fail in execution entirely in times of market volatility, where the maximum slippage has been breached.
Users may refer to the Max Slippage Explained for more information.
Risk Warning:
Trading in cryptocurrency involves risk and potential losses. Before trading, please make your investment decisions cautiously by considering your investment objectives, experience, and risk tolerance. You are solely responsible for your investment decisions, and Flipster is not liable for any losses you may incur. Derivatives trading, in particular, is subject to high market risk and price volatility. Please obtain independent advice where appropriate. This information should not be construed as financial or investment advice.