Time-In-Force 🆕

Time-In-Force indicates how long an order will remain active before it is executed or expires, and applies only after the order is triggered.

When placing an order, traders have the option to select different 'Time in Force' strategies to determine how the order is executed. These strategies provider traders with greater control over their trading approach.

Demex offers three different 'Time in Force' order execution options:

• Good-Till-Cancelled (GTC): The order will remain valid until it is completely executed or manually cancelled by the trader. GTC is suitable for traders who are willing to wait for all contracts to be completed at a specified price and have the flexibility to cancel unconcluded contracts at any time whenever necessary.

  • Applicable to Limit and Stop Limit orders

  • Compatible with Post-Only and Reduce-Only execution options

• Fill-Or-Kill (FOK): With this strategy, the order must be executed immediately at the specified price or better. If this condition is not met, the order is entirely canceled, and partially filled contracts are not allowed. FOK is commonly used by scalping traders or day traders seeking short-term market opportunities.

  • Applicable to all order types

  • Compatible with Reduce-Only execution option

• Immediate-Or-Cancel (IOC): Under this strategy, the order must be filled immediately at the specified limit price or better. If the order cannot be filled immediated, the unfilled contracts are cancelled. IOC is typically utilized to prevent large orders from being executed at prices that deviate significantly from the desired price. With IOC set, any contracts that fail to trade at the specified price are automatically cancelled.

  • Applicable to all order types

  • Compatible with Reduce-Only execution option

Example

Let's say a trader wants to buy 10,000 contracts immediately, but at a price not exceeding USD 8,001.

The current market situation is depicted in the following table:

Time-In-Force Execution Method

1. If the trader employs GTC to execute the order, 5,000 contracts will be promptly executed, while the remaining 5,000 contracts will be added to the order book and queued.

2. If the trader uses FOK to execute the order, and since there are currently less than 10,000 contracts that can be transacted in the order book, no contract will be executed and the ENTIRE order will be cancelled.

3. If the trader uses IOC to execute the order, 5,000 contracts will be filled at $8,001 and the remaining unfilled orders will be cancelled.