Bitget: Three types of futures orders – GTC, FOK, and IOC

Orders are instructions investors use to buy or sell assets on the market, including on Bitget. Simply put, any buy or sell transaction generated by a user is an order. In futures trading, there are three common types of orders: GTC, FOK, and IOC are three common types of orders. This article delves into these order types and their use cases.

1. GTC (Good Till Cancel)

In Bitget's futures trading, a GTC order, or "Good Till Cancel" order, remains active until the user manually cancels it. This means that, unless canceled by the investor, the order will stay open until the market price meets the specified trading conditions.

Key features of GTC orders:

• Persistent validity: GTC orders offer flexibility and long-lasting validity. Investors can set GTC orders based on their long-term trading strategy without worrying about order expiration. For instance, if an investor anticipates a specific cryptocurrency will reach a certain price in the future, they can set up a GTC order in advance and wait for the price to hit the target.

• No time constraints: Unlike time-limited orders, GTC orders aren’t bound by specific time limits. Regardless of how long it takes, the order will execute once the conditions are met. This is especially convenient for long-term investors or those who don’t actively monitor the market, helping them avoid missed opportunities.

GTC orders are suitable for investors who have a clear view of market trends but are uncertain of the exact timing for execution. For instance, if an investor believes a cryptocurrency may experience significant price fluctuations over the coming months but cannot pinpoint the timing, a GTC order allows them to capture potential trading opportunities.

2. FOK (Fill or Kill)

A FOK order, or “Fill or Kill,” means the order will be either fully filled immediately or canceled entirely. When placing a FOK order, the system attempts to fill it at the requested price and quantity right away. If there isn’t enough liquidity to meet these requirements, the order is canceled instantly.

Key features of FOK orders:

• Strict fulfillment requirement: FOK orders require complete fulfillment, with no partial fills allowed. This means that the market must have sufficient match orders to meet both quantity and price requirements within a very short period, or the order won't execute.

• Quick execution or cancellation: This type of order is executed instantly. Upon submission, the system attempts to fulfill it immediately. If the conditions aren't met, the order is canceled right away, preventing it from lingering in the market.

FOK orders are ideal for investors who need strict immediacy and completeness in their trades. For instance, professional trading institutions or investors with specific strategies may use FOK orders when executing large trades to avoid the risks and uncertainties of partial fills. If they want to buy or sell a large quantity of cryptocurrency at a specific price without accepting partial fills, a FOK order is the perfect choice.

3. IOC (Immediate or Cancel)

An IOC order, or "Immediate or Cancel," means "execute immediately; cancel the remainder." After an IOC order is placed, the system attempts to fill as much of the order as possible at the specified price immediately, while any unfilled portion is automatically canceled.

Key features of IOC orders:

• Partial fulfillment option: Unlike FOK orders, IOC orders allow partial fills. The system fills as much as it can and cancels the remainder, ensuring the trader can at least capture part of the trade.

• Rapid market response: This type of order is processed instantly. Upon receiving the order, the system quickly attempts to fulfill it, allowing traders to seize opportunities even in fast-moving market conditions.

IOC orders are suitable for investors looking to quickly execute trades at the current market price without leaving any unfilled portions behind. For example, if market conditions suddenly shift and an investor sees a favorable price but isn’t sure if there’s enough liquidity for a complete fill, they can use an IOC order to capture the current opportunity and avoid any impact on future trades from the remaining portion.

In summary, GTC, FOK, and IOC are three distinct order types in Bitget's futures trading, each with unique features and use cases. Understanding these types empowers users to navigate market conditions effectively and make informed decisions based on their trading goals. With a solid grasp of these fundamentals, users can customize their trading strategies to align with their preferences and objectives, becoming more informed and strategic traders.