Kill

AAA

DEFINITION of 'Kill'

To cancel a trade or order that has been placed, but not filled. A trader or investor may desire to kill an unfilled order when the market has moved against him or her (or merely because he or she has changed his or her mind), especially if the order is a market order rather than a limit order. Given the split seconds with which orders are executed today, a kill command needs to be sent almost instantly after the buy or sell order has been transmitted. Even then, there is no guarantee that the original order will be killed.

INVESTOPEDIA EXPLAINS 'Kill'

It may be especially difficult to kill unfilled orders in volatile markets with heavy volumes. This is because exchanges are sometimes unable to handle exceptionally heavy volumes; in such situations, the trader may be unable to receive confirmation of whether his or her original order was filled, or whether it has been killed. Note that the trader or investor is liable for the order once it has been filled.

RELATED TERMS
  1. Limit Order

    An order placed with a brokerage to buy or sell a set number ...
  2. Day Order

    An order to buy or sell a security that automatically expires ...
  3. Stop Order

    An order to buy or sell a security when its price surpasses a ...
  4. Market Order

    An order that an investor makes through a broker or brokerage ...
  5. Fill Or Kill - FOK

    A type of time-in-force designation used in securities trading ...
  6. Wall Street

    1. A street in lower Manhattan that is the original home of the ...
RELATED FAQS
  1. What are some ways to reduce downside risk when holding a long position?

    A trader seeking to minimize his downside risk in an existing long position can do a number of things to protect a portion ... Read Full Answer >>
  2. How do I determine where to set my stop loss?

    Determining stop-loss order placement is all about targeting an allowable risk threshold. This price should be strategically ... Read Full Answer >>
  3. What types of investors are best-suited for stop loss orders?

    From conservative investors to highly speculative day traders, no one likes to see a loss in a portfolio. There are several ... Read Full Answer >>
  4. What are the advantages of a limit order over a market order?

    The primary advantage of a limit order over a market order is that the limit order guarantees market entry at the trader's ... Read Full Answer >>
  5. Why is the execution of a limit order not guaranteed?

    A limit order is a great way to purchase a stock at a predetermined price point without needing to watch the price all the ... Read Full Answer >>
  6. Why do limit orders cost more than market orders?

    Two common ways to trade stock are market orders and limit orders. A market order is the simplest type of stock trade; it ... Read Full Answer >>
Related Articles
  1. Investing Basics

    Understanding Order Execution

    Find out the various ways in which a broker can fill an order, which can affect costs.
  2. Investing

    Tips For Investors In Volatile Markets

    Find out what to look out for when trading during market instability.
  3. Options & Futures

    Direct Access Trading Systems

    DATs can dramatically speed up order execution - find out how this system gives novice traders an edge.
  4. Options & Futures

    Having A Plan: The Basis Of Success

    It ensures that you have a realistic outlook, and a solid strategy. We show you why and how.
  5. Active Trading Fundamentals

    Limiting Losses

    It is impossible to avoid them completely, but there is a systematic method you can use to control them.
  6. Trading Strategies

    Making The Trade: Understand Order Types

    Buying and selling stock can be a lot like buying or selling a car. Traders should use and understand tools such as market orders, limit orders, day orders, and good-'til-canceled orders to ensure ...
  7. Trading Strategies

    Patience Is A Trader's Virtue

    Waiting may be the biggest key to reeling in that trophy investment.
  8. Investing Basics

    Narrow Your Range With Stop-Limit Orders

    With stop-limit orders, buyers protect themselves from prices too high for their tastes.
  9. Trading Strategies

    How to Use Trailing Stops

    A trailing stop is an order to buy or sell a security if it moves in an unfavorable direction.
  10. Active Trading

    Pinpoint Winning Trade Entries With Filters And Triggers

    These tools will help you enter at high-probability points and ensure you trade within your set strategy.

You May Also Like

Hot Definitions
  1. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  2. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
  3. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through ...
  4. Security Market Line - SML

    A line that graphs the systematic, or market, risk versus return of the whole market at a certain time and shows all risky ...
  5. Tangible Net Worth

    A measure of the physical worth of a company, which does not include any value derived from intangible assets such as copyrights, ...
  6. Marginal Utility

    The additional satisfaction a consumer gains from consuming one more unit of a good or service. Marginal utility is an important ...
Trading Center