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.

BREAKING DOWN '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. Cancel Former Order - CFO

    An order from an investor to a broker, to cancel a previously ...
  2. Fill

    A fill is the action of completing or satisfying an order for ...
  3. Day Order

    An order to buy or sell a security that automatically expires ...
  4. Limit Order

    An order placed with a brokerage to buy or sell a set number ...
  5. Fill Or Kill - FOK

    A type of time-in-force designation used in securities trading ...
  6. Canceled Order

    A canceled order is a previously submitted order to buy or sell ...
Related Articles
  1. Trading

    Understanding order execution

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

    High-Frequency Trading: A Primer

    An in depth look at how high-frequency trading works and who the players are.
RELATED FAQS
  1. How long does it take a broker to confirm a trade after it is placed?

    Learn about placing trades with a broker and the amount of time required to received confirmation of different types of orders. Read Answer >>
  2. What is the difference between a buy limit and a sell stop order?

    Understand the differences between the two order types, a buy limit order and a sell stop order, and the purposes each one ... Read Answer >>
  3. How can I prevent my limit order from not getting filled if the stock's price gaps ...

    You can minimize the chances of this situation happening if you understand two types of orders: the buy-stop order and the ... Read Answer >>
  4. Why can't I enter two sell orders on the same stock?

    The limitation on sell orders protects investors. Learn 3 reasons why you can't enter multiple sell orders and the downsides ... Read Answer >>
Hot Definitions
  1. Quick Ratio

    The quick ratio measures a company’s ability to meet its short-term obligations with its most liquid assets.
  2. Leverage

    Leverage results from using borrowed capital as a source of funding when investing to expand the firm's asset base and generate ...
  3. Financial Risk

    Financial risk is the possibility that shareholders will lose money when investing in a company if its cash flow fails to ...
  4. Enterprise Value (EV)

    Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market ...
  5. Relative Strength Index - RSI

    Relative Strength Indicator (RSI) is a technical momentum indicator that compares the magnitude of recent gains to recent ...
  6. Dividend

    A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.
Trading Center