Which statements about fill-or-kill orders are FALSE?

By Peter Cherewyk AAA
A:

I. They are among the six basic types of securities orders.
II. They must be executed immediately.
III. They must be executed in their entirety.
IV. Any portion that cannot be executed as soon as the order hits the trading floor is canceled.

A. I and III

B. I and IV

C.
III and IV

D.
II and III






Correct answer: B
Fill-or-kill is a qualifier of a market or limit order; it is distinct from an immediate-or-cancel in that a fill-or-kill must be executed in its entirety.



RELATED FAQS

  1. What are the rules for placing stop and limit orders in forex?

    The high amounts of leverage commonly found in the forex market can offer investors the potential to make big gains, but ...
  2. I don't understand how a stock has a trading price of 5.97, but when I buy it I have ...

    It might seem logical that the last traded price of a security is the price at which it would currently be trading, but this ...
  3. Why can't I enter two sell orders on the same stock?

    To answer this question, let's look at a few different situations. You bought a stock for $10 but want to be able to protect ...
  4. If I buy a stock at $45 and I put a stop limit in to sell at $40, will I be guaranteed ...

    Not necessarily. This is, unfortunately, one of the problems with orders. If a stop order is established, it means that the ...
RELATED TERMS
  1. Bidding Up - Securities

    The act of increasing the price an investor is willing to pay ...
  2. Closing Offset (CO) Order

    A limit order that allows the purchase or sale of a security ...
  3. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches ...
  4. Limit Order

    An order placed with a brokerage to buy or sell a set number ...
  5. Trailing Stop

    A stop order that can be set at a defined percentage away from ...
  6. Market-On-Open Order (MOO)

    An order to buy or sell shares that specifically requests execution ...
comments powered by Disqus
Related Articles
  1. Patience Is A Trader's Virtue
    Trading Strategies

    Patience Is A Trader's Virtue

  2. Narrow Your Range With Stop-Limit Orders
    Investing Basics

    Narrow Your Range With Stop-Limit Orders

  3. Pinpoint Winning Trade Entries With ...
    Active Trading

    Pinpoint Winning Trade Entries With ...

  4. Trailing-Stop Techniques
    Active Trading Fundamentals

    Trailing-Stop Techniques

  5. Darvas Box Traps Elusive Returns
    Trading Systems & Software

    Darvas Box Traps Elusive Returns

Trading Center