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. Stop Order

    An order to buy or sell a security when its price surpasses a ...
  3. Wall Street

    1. A street in lower Manhattan that is the original home of the ...
  4. Fill Or Kill - FOK

    A type of time-in-force designation used in securities trading ...
  5. Day Order

    An order to buy or sell a security that automatically expires ...
  6. Market Order

    An order that an investor makes through a broker or brokerage ...
Related Articles
  1. Understanding Order Execution
    Investing Basics

    Understanding Order Execution

  2. Tips For Investors In Volatile Markets
    Investing

    Tips For Investors In Volatile Markets

  3. Direct Access Trading Systems
    Options & Futures

    Direct Access Trading Systems

  4. Having A Plan: The Basis Of Success
    Options & Futures

    Having A Plan: The Basis Of Success

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center