In This Post
What is Filled order in forex and stock trading?
Although there may not be many differences between this term in stock and forex, a filled order is an order that has been executed, regardless of whether it is for opening or closing a position or for buying or selling. All of its requirements must be met before it can be considered a filled order.
This is usually a default option on an investor’s trading platform and highly likely to be executed. A market order is also sometimes called an unrestricted order and on average has low commissions, due to the lack of requirements, logistics, and effort needed to complete it.
What is Fill price
In a practical term, if you place an order to buy euros at $1.10 and it’s executed at that rate, $1.10 is the fill price.
So this is defined as the exact rate at which the buy or sell order executes. This term applies to all order types, including market, limit, and stop orders.
How Does It Work?
When you submit a trade order, it enters the market to find a matching counterpart. Once matched, the transaction completes at a specific rate.
This shows the current market conditions and liquidity, and high liquidity often leads to fill prices close to your expected rate. In other words, low liquidity can cause slippage, resulting in a price different from your intended rate.
Types of Fill Orders
Market Orders: A market order is an instruction to buy or sell a security immediately at the current price. It is always executed immediately at the best available price. The price may vary due to volatile market movements.
Limit Orders: Executed only at a specified price or better. This control ensures the fill price meets your expectations but doesn’t guarantee execution if the market doesn’t reach your set price.
Stop Order: Become active when the market reaches a predetermined price, triggering a market or limit order. The fill price depends on market conditions at activation.
Fill Price vs. Limit Price
The limit price is the rate you specify in a limit order, indicating the maximum you’re willing to pay or the minimum you’re willing to accept. The fill price is the actual rate at which the order executes. In a successful limit order, the price matches or improves upon the limit price. However, if the market doesn’t reach your limit price, the order remains unfilled.
Fill Price vs. FOK Orders
A Fill or Kill (FOK) order is an instruction to execute a trade immediately and entirely at a specified price; otherwise, it’s cancelled. If the market can’t fulfil the order in full at the desired price, no part of the trade occurs. In this context, the fill price must exactly match the specified rate for the order to execute.
Related Article:
Reach us on WhatsApp
