Which type of order, fill or kill or immediate or cancel, is more commonly used by cryptocurrency traders and why?

3 answers

• Benjamin JosephApr 17, 2021 · 4 years ago
  Cryptocurrency traders commonly prefer the immediate or cancel (IOC) order type over the fill or kill (FOK) order type. The IOC order allows traders to buy or sell a specified amount of cryptocurrency at the best available price in the market. If the entire order cannot be filled immediately, the remaining portion is canceled. This order type is popular among traders who want to execute their trades quickly and are willing to accept partial fills. It provides flexibility and liquidity, allowing traders to take advantage of price movements without waiting for the entire order to be filled. Additionally, IOC orders help prevent slippage, which is the difference between the expected price and the executed price. Overall, the IOC order type is more commonly used due to its speed, flexibility, and ability to minimize slippage.
  833

  417
• ajith asthaFeb 08, 2022 · 3 years ago
  When it comes to cryptocurrency trading, the fill or kill (FOK) order type is also commonly used by traders. The FOK order requires the entire order to be filled immediately or canceled entirely. Traders who use FOK orders typically have a specific target price in mind and want to execute their trades at that price or not at all. This order type is popular among traders who prioritize price execution over speed and flexibility. By using FOK orders, traders can ensure that their orders are executed at the desired price without the risk of partial fills or slippage. However, FOK orders may not be suitable for all trading strategies, especially those that require immediate execution or take advantage of price fluctuations. Overall, the choice between IOC and FOK orders depends on the trader's preferences, trading strategy, and risk tolerance.
  851

  284
• Bachmann LindOct 20, 2024 · 9 months ago
  At BYDFi, we have observed that both fill or kill (FOK) and immediate or cancel (IOC) order types are commonly used by cryptocurrency traders. However, the IOC order type is slightly more popular among our users. This preference can be attributed to the speed and flexibility offered by IOC orders, which align with the fast-paced nature of cryptocurrency trading. Traders often want to take advantage of price movements quickly and are willing to accept partial fills to do so. Additionally, IOC orders help minimize slippage, ensuring that traders get as close to their desired execution price as possible. While FOK orders have their merits, the majority of our users find IOC orders better suited to their trading needs. It's important to note that the choice between order types ultimately depends on the individual trader's preferences and trading strategy.
  863

  216