Time in Force Flags provides traders with a way to create specific behaviour of orders for a more sophisticated trading strategy. These types of orders are useful in the way, that they are another tool you can use to help manage risk, maximise returns and minimise losses. Click here to know more about the different order types on Delta Exchange.
Time in Force is a special instruction used to indicate how long will an order remain active for before it is executed or cancelled. This gives a trader the mechanism of controlling time for a particular trade.
Below are the 3 different types of TIF Flags on Delta Exchange:
An Immediate or Cancel (IOC) Order is an order that is executed immediately. If there is partial execution, the unfilled portion of the order is cancelled immediately. This guarantees immediate execution at the specified limit price or better. In case the order cannot be fulfilled the Limit IOC Order is then cancelled.
IOC orders are always executed as taker orders and hence incur taker fees.
Traders usually use Limit IOC when they want to acquire or load off shares within a price range. In essence, Limit IOC is a combination of a Limit Order and Market Order.
While closing a position from the positions tab, the Limit IOC option is available. Click here to know more.
A Fill or Kill (FOK) Order is an order that must be executed entirely 100% or nothing at all. Partial execution is not valid in FOK. A FOK order can be executed at the limit price mentioned or better, but only if it can be fully filled.
FOK orders are always executed as taker orders and hence incur taker fees.
A FOK order is mostly used when a trader wants to acquire or offload large quantities of a contract at a pre-determined price. If those requirements are fulfilled only partially, the trader does not want the order to be executed at all.
The main difference between FOK and IOC is the full and partial execution of an order. FOK ensures the entire order is executed or nothing at all. While in IOC if a part of the order can be executed, it will be executed and the unexecuted order is cancelled.
A Good till Cancelled Order or a GTC order is an open order till it is either executed or cancelled by the trader. If there is partial execution of an order, the remaining quantity is open till the order is either executed or cancelled. All Limit Orders on Delta Exchange are by default a GTC order
GTC orders may get executed either as a taker or maker order. To ensure that a GTC order is executed as a maker order, you can make it post-only.
Traders usually place a GTC order when they want to buy below the current market price or want to sell above the current market price. Usually, when a trader is not too particular on the trade being executed immediately, a trader will place GTC as there is uncertainty when the entire order will be fulfilled based on price and quantity.