What does "fill or kill" mean?
"Fuld OR Kill" is a term used to describe a specific approach to a business order issued by the investor to the intermediary. With this type of transaction, the broker has two order settlement options: fill in it completely or cancel the order if it is not possible to fully fill it in the time framework designated by the investor. While the filling of the fill or killing can be used for smaller volume orders, the strategy is more often used when it is a larger number of securities.
Filling concept or killing is somewhat similar to what is called immediate or cancellation of the order. With the latter, the timeframe to fill the order is relatively short, often due to an investor who wants to complete the order before there is any significant chance in related stock prices. Immediate or cancellation of the order also often allows brokers to manage a requirement with a number of transactions in this time frame rather than require a single purchase or sale. Instant or abolition strategy also uIt allows partial fulfillment of the order and then cancels any part that cannot be managed in the assigned time frame.
On the other hand, the order of filling or killing will also have some time limit. Although this limit may have a slightly longer duration, maybe a few business days, the order must be completed in full. For both approaches, the broker must determine whether it is possible to fill in the complete order according to the instructions provided by the investor. If not, the order must be killed or canceled.
One of the advantages of filling strategy or killing is that the investor is able to buy or sell securities while prices are in a nice range. Assuming that the order includes the purchase of shares, the investor will try to buy a larger part in the time framework just before the expectation of these shares increases value. If successful, it builds an investor to generate revenues relatively quickly, holding shares and beingHe died on the ridge for some time, then sold shares either in smaller land or as a block, as well as the price will start to equalize. If the order to fill in or killing is to sell shares, it is the idea of removing securities from the investment portfolio before it is assumed that it will start to lose value, allowing the investor to minimize losses and maintain any revenues generated by these shares until the actual sales date.