Fill

In the world of trading and investing, the term “fill” refers to the process of executing a trade. When an investor places an order to buy or sell a security, that order needs to be matched with a corresponding order from another party in order to be completed. The process of filling an order involves finding a match for the order at the desired price and quantity.

Types of Fill

There are several types of fill that can occur when executing a trade. A complete fill occurs when the entire order is matched with another party and executed at the specified price. A partial fill occurs when only a portion of the order is matched, leaving some of the order unfilled. A good fill occurs when the order is executed at a price that is beneficial to the investor, while a bad fill occurs when the order is executed at a less favorable price.

Market Impact

The speed and quality of the fill can have a significant impact on the overall performance of a trade. A slow or inefficient fill can result in missed opportunities or losses for the investor. Additionally, the price at which the order is filled can affect the profitability of the trade. Traders and investors often use various strategies and tools to minimize the impact of fill on their trades.

Order Types

There are different types of orders that traders can use to specify how they want their orders to be filled. For example, a market order instructs the broker to execute the order at the current market price, while a limit order instructs the broker to execute the order only at a specific price or better. Understanding the different order types and how they impact fill can help traders make more informed decisions when placing orders.