Order Lifetime refers to the specified duration during which a trading order remains active and eligible for execution within a market or an order book. It dictates the time constraints placed upon a submitted trade instruction.
Mechanism
This parameter is governed by various “time-in-force” instructions, such as Good-Till-Canceled (GTC), which keeps an order active indefinitely until filled or manually canceled; Fill-or-Kill (FOK), requiring immediate and complete execution; or Day Order, which expires at the end of the trading day. These instructions determine how long the system will attempt to match and complete the order.
Methodology
The strategic management of order lifetime in crypto investing allows institutional traders to control execution urgency and manage market exposure effectively. This methodology helps prevent stale orders from executing at unfavorable prices, optimizes algorithmic trading strategies by aligning order persistence with liquidity conditions, and enhances risk management by setting clear expiration parameters for pending trades within Request for Quote (RFQ) and institutional options trading systems.
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