When using market orders in derivatives accounts there is a risk that the execution price is significantly far away from the current Mark Price, especially during times of high volatility.

In order to prevent the execution of a market order at a price that would immediately cause a liquidation, market orders are converted to Immediate-Or-Cancel (IOC) orders with their limits calculated based on the account’s Available Margin. IOC orders may not always be able to be fully completed due to the limit and order book liquidity.