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Aloha, Chris
At 01:42 AM 8/12/97 -0700, JW wrote:
>What's an IOC?
>
>JW
>abprosys@xxxxxxx
>
>----------
>> 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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