Fill or Kill
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welshboy06
- Posts: 165
- Joined: Wed Mar 01, 2017 2:06 pm
I'm guessing its becomes some people (Myself included) aren't disciplined enough to know when our projection hasn't come in.
If you think the price will drift in a few seconds and you'll get matched then you place the back/lay at that price. A disciplined trader will say, well it hasn't moved as I thought, so I'll cancel it. A not so disciplined trader will keep the trade there and wait to get matched, not realising that things have changed for the worse, we end up getting matched and then the price goes strongly against.
Fill/Kill removes the need for us to make the decision on whether to keep the trade or not. As after the pre-set time it just kills the order.
If you think the price will drift in a few seconds and you'll get matched then you place the back/lay at that price. A disciplined trader will say, well it hasn't moved as I thought, so I'll cancel it. A not so disciplined trader will keep the trade there and wait to get matched, not realising that things have changed for the worse, we end up getting matched and then the price goes strongly against.
Fill/Kill removes the need for us to make the decision on whether to keep the trade or not. As after the pre-set time it just kills the order.