In stock trading, Time in Force (TIF) is a crucial directive that allows investors to set the effective time for their orders based on market conditions and trading objectives, thus enabling more flexible control over the timing and price of trades.

Understanding different Time in Force types can help investors optimize their trading strategies and maximize investment returns. Below are eight common Time in Force types, along with their applicable scenarios and operational examples.

1. Day Order

• Definition: A Day Order is valid only for the trading day on which it is placed. If the trade is not executed by the end of the day, the order is automatically canceled.
• Applicable Scenario: Suitable for investors who wish to buy or sell stocks at a specific price without continuously monitoring the market.
• Advantages: Can specify the trading price, effectively utilizing funds.Avoids overnight holding, reducing holding risk.
• Disadvantages: Short-term market fluctuations may lead to trade failure or unforeseen risks.
• Example: An investor wants to buy stock X at $98 per share (current price is $100). They place a DAY order. If the price drops to $98 during the day, the order will be executed; otherwise, it will be canceled.

2. Goods 'Til Canceled Order (GTC Order)

• Definition: A GTC Order remains in effect until executed or canceled, usually up to 90 days.
• Applicable Scenario: Suitable for investors who are not in a hurry to complete the trade and are willing to wait for the stock price to reach their target level.
• Advantages: Can specify the trading price, effectively utilizing funds.Allows waiting for a longer time for the market to reach the desired price.
• Disadvantages: Long-term orders may be forgotten, leading to unexpected trades.
• Example: An investor wants to buy stock X at $95 per share within the next 30 days. They place a GTC order. If the price reaches $95 within 30 days, the order will be executed; otherwise, it will be canceled after the period.

3. Immediate or Cancel Order (IOC Order)

• Definition: An IOC Order requires that any part of the order be executed immediately, with the unfilled portion canceled immediately.
• Applicable Scenario: Suitable for investors who need to execute part of the trade quickly and want to avoid short-term market fluctuations.
• Advantages: Can quickly execute the trade, reducing holding risk.Partial execution can flexibly respond to market fluctuations.
• Disadvantages: May not be fully executed, resulting in only a partial trade.
• Example: An investor wants to buy 1,000 shares of stock X at $99 per share. If only 500 shares are available at $99 at the time the order is placed, those 500 shares will be executed immediately, and the rest will be canceled.

4. Fill or Kill Order (FOK Order)

• Definition: A FOK Order requires the entire order to be executed immediately or not at all.
• Applicable Scenario: Suitable for investors with strict requirements on trade quantity and who want to complete the entire trade immediately.
• Advantages: Ensures the entire trade is executed at the same price, avoiding price deviations from partial execution.
• Disadvantages: Insufficient market liquidity may result in the order not being executed.
• Example: An investor wants to buy 1,000 shares of stock X at $99 per share. If there are not enough shares to fulfill the order at $99, the entire order will be canceled.

5. Market on Open Order (MOO Order)

• Definition: A MOO Order is executed at the opening price immediately after the market opens.
• Applicable Scenario: Suitable for investors trading based on the previous day's market information.
• Advantages: Quick execution, utilizing market momentum at the open.
• Disadvantages: Cannot specify the trading price, which may lead to unfavorable execution prices.
• Example: Company X releases a disappointing earnings report after the market closes. An investor expects the stock to drop significantly at the open and places a MOO order to buy at the opening price.

6. Market on Close Order (MOC Order)

• Definition: A MOC Order is executed at the closing price immediately after the market closes.
• Applicable Scenario: Suitable for investors trading based on the day's market conditions.
• Advantages: Quick execution, utilizing market momentum at the close.
• Disadvantages: Cannot specify the trading price, which may lead to unfavorable execution prices.
• Example: An investor holds 1,000 shares of Company X and expects unfavorable news to be released after the market closes. They place a MOC order to sell at the closing price to reduce risk.

7. Limit on Open Order (LOO Order)

• Definition: A LOO Order is executed at the opening price or better, provided it matches the specified price.
• Applicable Scenario: Suitable for investors who wish to trade at a specific price at the market open.
• Advantages: Can specify the trading price, controlling trading risk.
• Disadvantages: May not be executed if the opening price does not match the specified price.
• Example: An investor wants to sell 1,000 shares of stock X at $101 per share at the open. They place an LOO order. If the opening price is $101 or higher, the order will be executed.

8. Limit on Close Order (LOC Order)

• Definition: A LOC Order is executed at the closing price or better, provided it matches the specified price.
• Applicable Scenario: Suitable for investors who wish to trade at a specific price at the market close.
• Advantages: Can specify the trading price, controlling trading risk.
• Disadvantages: May not be executed if the closing price does not match the specified price.
• Example: An investor wants to buy stock X at $99 per share at the close. They place an LOC order. If the closing price is $99 or lower, the order will be executed.