A fill-or-kill order will be A) executed immediately upon order arrival on the floor of the exchange. B) will be cancelled if not immediately executed at the stated price or better. C) will be cancelled at the end of the trading day if not executed by that time. D) in effect until cancelled by the customer who placed the order.

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Business

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31 March, 06:04

A fill-or-kill order will be A) executed immediately upon order arrival on the floor of the exchange. B) will be cancelled if not immediately executed at the stated price or better. C) will be cancelled at the end of the trading day if not executed by that time. D) in effect until cancelled by the customer who placed the order.

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Answers (1)

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Ally Gordon · Answer 1

The correct answer is letter "B": will be cancelled if not immediately executed at the stated price or better.

Explanation:

A fill-or-kill order is placed usually when a large number of shares will be purchased. Traders trigger this type of order to enter a large position at a certain price immediately. If all the shares requested are not filled, the order is automatically canceled. Fill-or-kill orders last as a maximum a couple of seconds not to affect the stock price.