What are IOC orders & how do they work?

Most online trading platforms allow IOC orders to be placed manually or programmed into automated trading strategies. Immediate-or-cancel (IOC) orders attempt to execute immediately and cancel any unfilled portion. IOC orders only require a partial fill, and may be designated as limit or market orders.

What is IOC in share trading?

IOC stands for Immediate Or Cancel order and is one of the time bound orders available to traders. As the name suggests, when you place an IOC, or Immediate or Cancel order, if the order doesn’t get executed immediately as soon as it is placed on the exchange, it gets cancelled.

What is a 'immediate or cancel' order?

Known in full as an 'immediate or cancel' (IOC) order, this is a specific type of order given by an investor or broker. The order requires a certain security to be bought or sold immediately. As the name suggests, any part of the order which can't be immediately fulfilled is cancelled. Where have you heard about immediate orders?

What is the difference between IOC and GTC orders?

IOC orders differ from other duration orders in that they only require a partial fill, whereas both FOK and AON orders must be filled in their entirety or canceled. GTC orders remain active until either executed in the market or canceled by the client, although most brokers cancel them between 30 and 90 days.