Immediate Or Cancel Order (IOC)

An immediate or cancel (IOC) order is a type of order that instructs a broker to buy or sell a security immediately at the best available price. If the order cannot be filled immediately, it is canceled. IOC orders are often used by traders who want to get into or out of a position quickly, and who are willing to accept the possibility that their order may not be filled.

There are two main types of IOC orders: market orders and limit orders. A market order is an order to buy or sell a security at the current market price. A limit order is an order to buy or sell a security at a specified price or better.

If you place an IOC market order, your broker will try to fill your order at the best available price. If the order cannot be filled immediately, it will be canceled. If you place an IOC limit order, your broker will try to fill your order at the specified price or better. If the order cannot be filled at the specified price, it will be canceled.

IOC orders can be a useful tool for traders who want to get into or out of a position quickly. However, it is important to remember that IOC orders can be canceled, so traders should only use them when they are willing to accept the possibility that their order may not be filled.

Here are some additional details about IOC orders:

• IOC orders are often used by day traders, who are looking to make quick profits by buying and selling stocks throughout the day.
• IOC orders can be used to buy or sell stocks, options, futures, and other financial instruments.
• IOC orders are not the same as fill-or-kill (FOK) orders. FOK orders are canceled if they cannot be filled at the specified price.
• IOC orders are not the same as good-till-canceled (GTC) orders. GTC orders remain active until they are filled or canceled by the trader.

If you are considering using IOC orders, it is important to understand the risks involved. IOC orders can be canceled, so traders should only use them when they are willing to accept the possibility that their order may not be filled.