In the fast-paced world of digital asset trading, precision and control are key. One of the most powerful yet often overlooked tools in a trader’s arsenal is the Time in Force (TIF) setting. This feature allows traders to define how and when their limit orders are executed, offering strategic flexibility depending on market conditions and trading goals.
Time in Force options are available across multiple trading products on major platforms, including Spot Trading (for Unified Trading Account users) and Perpetual & Futures Trading (for both Standard and Unified Trading Account holders). By selecting the appropriate TIF strategy, traders can better manage execution quality, reduce slippage risk, and align orders with their overall trading plan.
This guide dives deep into the three primary Time in Force types—Good Till Canceled (GTC), Immediate or Cancel (IOC), and Fill or Kill (FOK)—explaining how each works, when to use them, and real-world implications through a detailed example.
Understanding Time in Force: Core Concepts
Time in Force refers to instructions that determine how long an order remains active in the market and under what conditions it should be executed or canceled. These settings apply specifically to limit orders, giving traders fine-grained control over order behavior without requiring constant monitoring.
The three main TIF options offered by leading exchanges like Bybit are:
- Good Till Canceled (GTC)
- Immediate or Cancel (IOC)
- Fill or Kill (FOK)
Each serves a distinct purpose and caters to different trading styles—from passive investing to aggressive scalping.
Good Till Canceled (GTC)
GTC allows a limit order to stay active on the order book until it is either fully filled or manually canceled by the trader. This gives maximum flexibility for those who want to wait for a specific price level without needing to re-enter the order repeatedly.
✅ Best for: Traders seeking precise entry or exit points over longer timeframes
🚫 Not ideal for: Fast-moving markets where delayed execution could lead to missed opportunities
For example, if you're waiting for Bitcoin to drop to $60,000 before buying, setting a GTC order ensures your bid stays live even if the price doesn’t reach your target immediately.
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Immediate or Cancel (IOC)
An IOC order requires immediate partial or full execution at the specified limit price—or better. Any portion of the order that cannot be filled instantly is automatically canceled.
This strategy balances urgency with partial fill acceptance, making it ideal for traders who want quick entries but don’t require 100% execution.
✅ Best for: Medium-sized orders where some liquidity capture is acceptable
🚫 Not ideal for: Large orders in low-liquidity markets (risk of significant unfilled volume)
For instance, if you place a large buy order during high volatility, IOC ensures you get whatever is immediately available at your price while canceling the rest to avoid lingering exposure.
Fill or Kill (FOK)
A FOK order demands that the entire quantity be executed immediately at the limit price—or better—or not at all. There are no partial fills; it's all-or-nothing.
This method is commonly used by algorithmic traders and institutions that require complete position entries at precise prices to maintain strategy integrity.
✅ Best for: High-frequency trading, arbitrage strategies, or strict risk management setups
🚫 Not ideal for: Illiquid markets or large orders where full depth may not exist
If your FOK order doesn’t find matching liquidity instantly, it disappears from the book entirely—protecting you from unintended slippage.
Real-World Example: Comparing GTC, IOC, and FOK
Let’s illustrate these strategies using a practical scenario.
Scenario:
A trader wants to buy 10,000 contracts of a perpetual futures pair at a maximum price of $8,001 per contract. The current market order book looks like this:
Order Book Snapshot (Buy Side - Market Depth: 0.5):
- $8,003 — 3,000 contracts
- $8,002 — 5,000 contracts
- $8,001 — 5,000 contracts
- Last Traded Price: $8,000
- Mark Price: $8,050
Now let’s see how each Time in Force setting affects execution:
| Time in Force | Order Qty | Limit Price | Executed Qty | Avg Entry Price | Unfilled Qty |
|---|---|---|---|---|---|
| GTC | 10,000 | $8,001 | 5,000 | $8,001 | 5,000 (queued) |
| IOC | 10,000 | $8,001 | 5,000 | $8,001 | 5,000 (canceled) |
| FOK | 10,000 | $8,001 | 0 | — | 10,000 (canceled) |
Interpretation:
- GTC: 5,000 contracts execute immediately at $8,001. The remaining 5,000 stay on the order book as a standing limit order, waiting for more sellers to appear at or below $8,001.
- IOC: Same immediate fill of 5,000 contracts. However, instead of queuing the rest, the system cancels the remaining 5,000 instantly.
- FOK: Since the full 10,000 cannot be filled at $8,001 or better right now (only 5,000 available), the entire order is rejected and canceled.
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Frequently Asked Questions (FAQ)
Q: What happens to a GTC order if I log out of my account?
A: GTC orders remain active on the exchange even after logging out. They persist until fully filled or manually canceled by the user.
Q: Can IOC orders result in zero execution?
A: Yes. If there is no matching liquidity at your limit price when the order hits the market, the entire order will be canceled with zero fills.
Q: Is FOK suitable for retail traders?
A: While often used by institutional players, FOK can benefit retail traders executing time-sensitive strategies where partial fills would disrupt their risk-reward balance.
Q: Do all exchanges support these Time in Force options?
A: Most major derivatives and spot trading platforms—including OKX, Bybit, and Binance—support GTC, IOC, and FOK across various trading products.
Q: Can I change the Time in Force after placing an order?
A: No. The TIF setting must be selected before submitting the order. To modify it, you’ll need to cancel and re-place the order with a new TIF selection.
Q: Does using IOC or FOK affect trading fees?
A: Not directly. Fee structures typically depend on whether you're a maker or taker. However, IOC and FOK orders may execute as taker trades more frequently due to their immediacy.
Choosing the Right Strategy: A Quick Guide
| Trading Style | Recommended TIF | Why? |
|---|---|---|
| Passive Investing | GTC | Allows patience for ideal pricing without manual oversight |
| Scalping | IOC or FOK | Prioritizes speed and precision; avoids stale orders |
| Arbitrage | FOK | Ensures full execution or none—critical for synchronized trades |
| High-Volatility Entry | IOC | Captures available liquidity quickly while limiting residual exposure |
Understanding which TIF matches your strategy helps improve trade efficiency and reduces emotional decision-making.
Final Thoughts
Mastering Time in Force settings is a hallmark of disciplined trading. Whether you're aiming for precision with GTC, speed with IOC, or all-or-nothing control with FOK, these tools empower you to interact with markets on your terms.
As digital asset markets evolve, so too must trading techniques. Leveraging advanced order types like GTC, IOC, and FOK enables smarter entries, tighter risk control, and greater consistency—essential traits for long-term success.
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By integrating these concepts into your routine and practicing with real market data, you’ll gain a measurable edge over traders who rely solely on basic market orders.