Which statement about FOK and IOC orders is true?

Which statement about FOK and IOC orders is true?

• A. They must always be limit orders
• B. They can be entered only during pre-market trading
• C. They never appear in the order book
• D. They are not restricted to continuous trading

Answer: (C)

FOK and IOC are execution styles that demand immediate action on an order. With a Fill or Kill, the entire order must be filled right away at the chosen price; if any part cannot be filled immediately, the whole order is canceled. With Immediate or Cancel, any part that can be filled immediately is executed, and the remaining unfilled portion is canceled. Because these instructions require instant results, such orders do not sit as resting bids or offers in the order book. That’s why the statement that they never appear in the order book is best. The other options don’t fit: they aren’t restricted to pre-market or to being not near continuous trading, and they aren’t simply standard limit orders—these are special, time‑sensitive execution rules.

FOK and IOC are execution styles that demand immediate action on an order. With a Fill or Kill, the entire order must be filled right away at the chosen price; if any part cannot be filled immediately, the whole order is canceled. With Immediate or Cancel, any part that can be filled immediately is executed, and the remaining unfilled portion is canceled. Because these instructions require instant results, such orders do not sit as resting bids or offers in the order book.

That’s why the statement that they never appear in the order book is best. The other options don’t fit: they aren’t restricted to pre-market or to being not near continuous trading, and they aren’t simply standard limit orders—these are special, time‑sensitive execution rules.