The term “fill ratio” measures the percentage of a trader’s orders that successfully execute in the market. Traders use this metric to evaluate the efficiency of their order execution.

When big orders are broken up into smaller ones to reduce market impact or control risk, it regularly acts as an indicator of how successfully and efficiently an order has been carried out.

A high ratio means that the majority of the order was completed, whereas a low fill ratio means that only a small portion was filled.

What Is the Order-to-Fill Ratio?

The order-to-fill ratio measures how many of a trader’s orders were fulfilled as a percentage of total orders. A higher ratio reflects efficient order execution, while a lower ratio suggests issues like poor market liquidity or ineffective trading strategies.

How to Calculate the Fill Ratio

The Following steps are use to calculate the ratio effectively:

1. Count the Filled Orders: Identify how many of your placed orders executed successfully.
2. Count the Total Orders: Find the total number of orders you placed during a specific period.
3. Apply the Formula: Use this formula to calculate the percentage:F Ratio (%) = (Number of Filled Orders / Total Number of Placed Orders) × 100

Example:

If a trader places 100 orders and 90 execute successfully, the fill ratio is:

F Ratio (%) = (90 Filled Orders / 100 Placed Orders) × 100 = 90%

This 90% fill ratio shows that the trader executes orders efficiently.

Example in Forex Trading

A trader submits 50 buy orders, out of these, 45 execute successfully. Using the formula:

F Ratio (%) = (45 Filled Orders / 50 Placed Orders) × 100 = 90%

This high ratio of 90% demonstrates effective order execution, reducing missed opportunities and slippage.

Why is it Important?

Monitoring your ratios helps you assess the effectiveness of your order execution strategy. A low ratio may indicate your orders do not align well with market conditions, possibly due to insufficient liquidity or aggressive pricing. A high ratio, however, shows that your strategy executes orders efficiently, which supports consistent trading performance.