What Is Time in Force?
Time in Force (TIF) is a parameter attached to trading orders that determines how long the order stays active. The most common TIF types: GTC (Good Till Cancelled) remains until filled or manually cancelled, IOC (Immediate or Cancel) fills whatever portion is available instantly and cancels the rest, and FOK (Fill or Kill) must be filled entirely or not at all.
How Time in Force Works
Different TIF types serve different strategies. Day traders use IOC for quick executions. Swing traders use GTC to set limit orders at target prices that may take days to hit. Market makers use FOK to ensure they get the full size they need or nothing. Some exchanges also support GTD (Good Till Date) which expires at a specified time.
Why It Matters for Traders
Choosing the right TIF prevents unintended fills. A forgotten GTC limit order at a price that seemed unrealistic could fill during a flash crash, creating an unwanted position. Conversely, using IOC when you need a full fill could leave you with a partial position that changes the risk profile of your trade. Match your TIF to your strategy and always review open orders.
