Dear WEEXers,
When setting an order, a trader can choose different "Time in Force"strategies to set the effective execution method of the order. Order execution strategies allow traders to have more control over their trading strategies.
WEEX offers three different "Time in Force" order execution strategies for limit orders.
Good till cancelled (GTC):The order will remain valid until it is fully executed or manually cancelled by the trader. GTC is suitable for traders who are willing to wait for all futures contracts to be completed at a specified price and can flexibly cancel concluded futures contracts at any time.
Fill or Kill (FOK):The order must be fully executed immediately at the specified price or better; otherwise, it will be completely canceled. Partial fills are not allowed. This execution strategy is commonly used by scalping traders or day traders seeking short-term market opportunities.
Immediate or Cancel (IOC):The order must be filled immediately at the order limit price or better. If the order cannot be filled immediately, the unfilled futures contracts will be cancelled. IOC is usually used to avoid large orders being executed at a price that deviates from the ideal price. With this set, the contracts that fail to trade at the specified price will be cancelled.
Example of a "Time in Force" order execution strategy: A trader wants to buy 10,000 futures contracts immediately, but the execution price cannot exceed USD 8,001. The current market situation is shown in the following figure:
Market order book:
|
Market Depth |
||
|
Order Price |
Quantity |
Total |
|
$8003 |
3000 |
13000 |
|
$8002 |
5000 |
10000 |
|
$8001 |
5000 |
5000 |
|
Last Traded Price: $8000 Mark Price: $8050 |
|
$8000 |
4000 |
4000 |
|
$7999 |
5000 |
9000 |
|
$7998 |
8000 |
17000 |
Time in force execution methods:
|
Time in Force: |
Order Quantity: |
Order Price: |
Executed Order Quantity: |
Average Entry Price: |
Unfilled Quantity: |
|
GTC |
10,000 |
$8,001 |
5,000 |
$8,001 |
5,000 (Order will be placed in the order book to await execution) |
|
FOK |
10,000 |
$8,001 |
0 |
0 |
10,000 (Order cancelled) |
|
IOC |
10,000 |
$8,001 |
5,000 |
$8,001 |
5,000 (Order Cancelled) |
Ⅰ. If the trader uses GTC to execute the order, then 5,000 futures contracts will be executed immediately, while the remaining 5,000 futures contracts will enter the order book and wait in the queue, as shown in the figure above.
Ⅱ. If the trader uses FOK to execute the order. Since there are currently less than 10,000 futures contracts that can be transacted in the order book, no futures contract will be executed and the order will be cancelled.
III. If the trader uses IOC to execute the order, 5,000 futures contracts will be filled at $8,001 and the remaining unfilled orders will be cancelled.
Thank you for your support of WEEX!
WEEX Team
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