IOC (Immediate or Cancel)

IOC (Immediate or Cancel) is a type of order used in financial markets. It is designed for traders who want their orders to be executed immediately or canceled if they cannot be filled immediately.

When an IOC order is placed, it is either executed immediately at the best available price or canceled if it cannot be fully executed. This means that if the full order cannot be filled immediately, any remaining quantity is automatically canceled. The IOC order prioritizes speed of execution over order completeness.

Traders often use IOC orders in fast-moving markets or when they need to take advantage of immediate price opportunities. For example, if a trader believes that a stock is about to experience a sudden price increase, they may place an IOC order to buy the stock at the best available price. If the order cannot be filled immediately, it is canceled, ensuring that the trader does not end up with a partially filled order at an unfavorable price.

It’s important to note that while IOC orders prioritize speed of execution, there is no guarantee that the entire order will be filled. If there is insufficient liquidity in the market or if the order size is too large, only a portion of the order may be executed before the rest is canceled.

IOC orders can be used in conjunction with other order types. For example, a trader may place an IOC order to execute a portion of their desired trade immediately and then place a limit order for the remaining quantity.

In summary, IOC (Immediate or Cancel) is a type of order that prioritizes immediate execution or cancellation if the order cannot be filled immediately. It is commonly used in fast-moving markets or when traders want to take advantage of immediate price opportunities. However, there is no guarantee of complete execution with IOC orders.