Time in Force
Time in force is a special instruction used when placing a trade to indicate how long an order will remain active before it is executed. These options are especially important for active traders as they can diversify their trading strategies.
Time in Force Types
There are three types of Time in Force orders which are used together with limit orders.
This order must execute all or part immediately and cancels any unfilled portions of the order. Traders typically use IOC orders when submitting a large order to avoid having it filled at an array of prices. IOC can be selected when placing limit orders including conditional limit orders.
If David places a buy long limit IOC order of 10,000 BTC/USDT contracts at 9,500 USDT while the market depth only contains 7,000 BTC/USDT contracts at the ask price of 9,500 USDT, the order will only fill the quantity available (7,000) and cancel the remaining (3,000).
*Ask Price: When a sell order is submitted into the order book, it is placed with many different sell orders. The order with the lowest price is the current ask price.