Time in force is a special set of instructions for traders to indicate how long an order will remain active before or after execution. These options are especially important for active traders as they allow traders to have more control over their investment strategies.
On Bybit, there are three types of Time in Force options for limit orders.
GoodTillCancelled (GTC) order remains effective indefinitely until fully executed unless cancellation is made by the trader. A GTC order is suitable for a trader who is willing to wait for the full quantity to be filled in its entirety and has the flexibility to cancel unfilled quantity any time. This is the default option for all orders made on Bybit.
FillOrKill (FOK) order is an order that must be immediately filled entirety at the limit price or better. Otherwise, it will be totally cancelled. No partial fills are allowed. FOK orders are normally used by day traders who are hoping to scalp or take advantage of the opportunity in the market within a short duration.
For example, Trader A intends to enter a market with a Buy Long limit order at USD 8000 at 10,000 contracts with a FOK time in force strategy. Upon submission, the market depth contains only 9000 contracts at a selling price of USD 8000. As such, the order will not be executed and cancelled as the available quantity of 9000 at USD 8000 is unable to fully fill up the limit order.
ImmediateOrCancel (IOC) order that must be filled immediately at the limit price or better only. If the order cannot be filled immediately or fully, the unfilled portion will be cancelled. An IOC order may be used when a large order is submitted to the market. To avoid having a large order filled at a wide variety of prices, an IOC automatically cancels any part of the order that does not fill immediately.
For example, Trader A intends to enter a market with a Buy Long limit order at USD 8000 at 10,000 contracts with an IOC time in force strategy. The market depth contains only 9000 contracts at a selling price of USD 8000. As such, this order will be proceed to execute and fill the available quantity of 9000 at USD 8000 and the remaining 1000 contracts will be cancelled.