Order Types Guide: Market, Limit, ROD, IOC, FOK Trading Guide

In cryptocurrency trading, mastering different order types is key to success. Besides the basic market and limit orders, there are advanced order time settings such as ROD, IOC, FOK, and more. This article will give you a comprehensive understanding of these order types to help you make smarter trading decisions.

Market and Limit Orders: The Two Fundamental Order Types

Market Order: Execute Immediately at Current Market Price

A market order is an order where traders buy or sell assets instantly at the real-time market price. You don’t need to set a specific transaction price; the system will automatically execute at the best available price on the order book.

For example, if Bitcoin’s current bid price is 42,500 USDT and the ask price is 42,510 USDT, placing a market buy order will execute immediately at 42,510. However, note that due to rapid market fluctuations, the actual transaction price may differ from the quoted price you see.

The biggest advantage of market orders is fast execution and high fill rates, making them suitable for short-term traders who seek immediate entry or exit. The risk is that you cannot precisely control the transaction price, and in volatile markets, you might buy high or sell low.

Limit Order: Execute at a Specified Price, Giving You Control

A limit order allows traders to set a specific price point, and the order will only execute when the market reaches that price. Simply put, it’s like bargaining at a market—you set a price, and if the market doesn’t reach it, the order remains unfilled.

Limit orders are divided into two types:

• Buy Limit: Set to buy at a specified price or lower
• Sell Limit: Set to sell at a specified price or higher

For example, if you believe Ethereum’s fair buy price is 2,200 USDT, you can place a limit buy order at that price. When the market drops to this level, the order will automatically execute. The advantage of limit orders is full control over the transaction price, which can increase profit potential. The downside is that there’s no guarantee of immediate fill; the market may never reach your set price.

ROD, IOC, FOK: Order Time Validity Settings

In actual trading, many platforms also offer three advanced order time settings: ROD, IOC, and FOK.

ROD (Rest of Day): Valid for the Day

ROD orders remain valid throughout the trading day until the market closes or the order is manually canceled. If not filled during the day, the order stays on the order book waiting for an opportunity. This method is suitable for day traders and is especially useful in volatile, oscillating markets.

For example, if you place a limit buy order at 10:00 AM with ROD, the order will stay active until the market closes, executing automatically if the price reaches your set level at any time during the day.

IOC (Immediate or Cancel): Execute Immediately or Cancel

IOC orders require immediate execution. If the order cannot be fully filled instantly, the unfilled portion is automatically canceled. This is suitable for scenarios where timing is critical, such as pre-positioning before major news releases.

Using IOC, a limit buy order for 1 BTC will attempt to fill within a second. If only 0.8 BTC can be filled, the remaining 0.2 BTC will be canceled automatically instead of remaining on the order book.

FOK (Fill or Kill): Fill Completely or Cancel Entirely

FOK is a stricter version of IOC, requiring the entire order to be filled immediately; otherwise, the entire order is canceled. This is common in large-volume trades or scenarios demanding transaction completeness.

Compared to IOC’s “fill what you can,” FOK insists on “full fill or no fill,” ensuring transaction consistency.

How to Choose: Based on Trading Style

Urgent Entry/Exit: Use Market Orders

When major positive or negative news hits, or asset prices surge or plummet, use market orders to guarantee instant execution. Manually entering a price may be too slow; placing a market order is the best strategy.

Not in a Hurry: Use Limit Orders

If you have clear target buy/sell prices and are not in a rush, limit orders are preferable. Especially in oscillating markets (e.g., assets fluctuating between 40,000-45,000 USDT), placing a limit buy order and stepping away allows automatic execution while saving on trading fees.

This approach saves costs and is suitable for traders who can’t monitor the market constantly. Set a “buy at 50, sell at 60” limit order, then close the software and stick to your strategy for long-term profit.

Time-Sensitive Scenarios: Use IOC or FOK

In fast-moving markets, ROD orders may wait too long. For immediate response, IOC offers a balanced “try to execute” approach, while FOK ensures full fill or none, suitable for urgent large trades.

Risk Management and Precautions

Risks of Limit Orders

The biggest risk is that a limit order may never be filled. Setting reasonable prices requires considering the asset’s actual value, market liquidity, and technical factors. Patience is key—avoid frequent adjustments.

Risks of Market Orders

In highly volatile markets, using market orders can lead to unfavorable prices. Many traders chase price movements impulsively; while quick entry is tempting, beware of sudden reversals after a spike.

Risks of IOC and FOK

These two order types are suitable for experienced traders. FOK’s requirement for full fill can fail in illiquid markets; always assess market depth before using.

Mastering these order types and applying them flexibly according to your trading style will help you better control risks and optimize costs.