Time In Force (TIF)

What Is Time in Force in Crypto?

Time in force (TIF) is the timeframe in which your trading order remains active in the market until it expires. Put simply, it is a special instruction that specifies how long your order remains open (in force) before it is either executed or canceled.

That said, TIF orders offer traders control over the timing and execution of trades. And since it allows them to set time parameters, it protects them from unexpected price swings that can arise from an order being active for too long.

What Are the Different Types of TIF?

The common types of TIF orders in crypto include:

• Good ‘til canceled (GTC) order – GTC orders remain in force or valid until they are either completely executed or the trader manually cancels them. This means that the order remains active in the order book until you cancel it, regardless of the time it takes. As such, it is suitable for investors willing to wait to close their positions at a specific price or flexibly cancel an unfilled order.
• Immediate or cancel (IOC) order – IOC orders must be executed immediately at the limit order price or better, either in full or partially. Any remaining portion of the order that can’t be immediately filled is canceled. This means that if the entire order cannot be filled immediately, it is canceled in its entirety. Traders often set IOC orders to prevent large orders from being executed at a less-than-ideal price.
• Fill or kill (FOK) order – A fill or kill (FOK) order is a buy or sell order that must be executed immediately in full (filled) at the set price or canceled altogether (killed). In other words, a FOK order must be immediately filled at the best available price in its entirety. If there’s insufficient liquidity to fill the entire order at the desired price, the entire order is completely canceled. This means that FOK doesn’t allow partially filled orders.