Question

Orders marked SWEEp are ------- sweep to fill orders while orders marked SPLIT are ------- sweep to fill order.

A) Market, Limit
B) Day, GTC (Good Till Cancel)
C) All-or-None, Fill-or-Kill
D) Immediate-or-Cancel, Fill-or-Kill

Answer 1

Orders marked SWEEP are an immediate-or-cancel approach meaning they execute immediately and cancel any unfilled parts, while orders marked SPLIT use a fill-or-kill condition which requires the order to be completely filled immediately or canceled.

Step-by-step explanation:

Orders marked SWEEP use an immediate-or-cancel (IOC) approach, which means that the order will execute all or part of it immediately and cancel any unfilled portion. On the other hand, orders marked SPLIT typically utilize a fill-or-kill (FOK) condition, where the order must be filled in its entirety immediately or it is cancelled. This is often applied in large orders to prevent partial fills or multiple commissions but ensuring a quick execution if it can be completely filled.

Therefore, the correct answer for the student's question is:

C) All-or-None, Fill-or-Kill