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What's an IOC?
JW
abprosys@xxxxxxx
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> From: THE DOCTOR <droex@xxxxxxxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Subject: Re: General: Fill or Kill Orders
> Date: Monday, August 11, 1997 8:50 PM
>
> There are two types of orders that are considered to be less beneficial
> than most by pro traders.
>
> FOK and AON.....both are viewed as benefiting the floor versus the
> customer.
>
> The assumption is that a FOK is a "fishing trip" most often indicating
> that if killed an order will follow that may better fit the crowds
> needs. FOK in quiet markets are obviously more likely to be filled
> because the crowd is generally less likely to need a position to
> complete a hedge.
>
> AON is simply suicide. It is generally done to keep commission costs
> low(avoid partial fills). In reality it is a stop order against the
> crowds outstanding position. It doesn't exist except between the crowd
> and the customer....in securities market it CANNOT be displayed on the
> trading screens(FOK can't be displayed either). Any move of the
> underlying that would harm the price assures a fill. You often save
> transaction costs but almost always get a worse fill.
>
> Try an IOC......you can get a partial. Somebody just bought some of
> these or sold them..with an IOC they could get a quick scalp...fill
> you...and be out. You might get a partial fill.....Which would you
> rather get a bad fill or pay a little more commission?
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