What Is an IOC?

An immediate or cancel order (IOC) is an order to buy or sell a security that will execute all or part immediately and then cancel any unfilled portion of the order. An IOC order is one of several "duration," or 澳洲幸运5官方开奖结果体彩网:time-in-force orders, that investors can🌟 use to specify how long the order remains active in the market and under what conditions the order is canceled🍒.

Other commonly used duration order types include 澳洲幸运5官方开奖结果体彩网:fill or kill (FOK), 澳洲幸运5官方开奖结果体彩网:all or none (AON), and good ‘till canceled (GTC). Most online trading pla𒊎tforms allow IOC orders to be pla🌌ced manually or programmed into automated trading strategies.

How IOC Works

Investors can submit either a “limit” or “market” immediate or cancel order (IOC) depending on their specific execution requirements. An IOC limit order is entered at a particular price, whereas an IOC market order has no price attached and transacts with the best offer price for a buy and the best 澳洲幸运5官方开奖结果体彩网:bid price for a sell.

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 executed in the market or canceled by the client, although most brokers cance💝l them between 30 🅺and 90 days.

When To Use an IOC Order

Investors typically use IOC orders when submitting a large order to avoid having it filled at varying prices. An IOC order automatically cancels any part of the order that doesn’t fill immediately. Assume a trader places an IOC order to purchase 5,000 shares of International Business Machines Corporation (IBM). Any portion of the 5ౠ,000 shares not purchased immed🌄iately is automatically canceled. Those who trade several stocks throughout the day may use an IOC order to minimize the risk of forgetting to cancel an order at the close.

Example

Suppose an investor places an IOC market order to buy 1,000 shares of Apple Inc. (AAPL). The 澳洲幸运5官方开奖结果体彩网:order book shows 2,000 shares 🦹bid at $170.95 and 500 shares offered a😼t $171.00. The order would immediately fill 500 shares at the offer price ($171) and cancel the unfilled portion of 500 shares.

Let's assume another investor places an IOC limit order to buy 1,000 shares of Apple at $169 around the market open when the stock is currently offered at $170. The 澳洲幸运5官方开奖结果体彩网:S&P 500 drops slightly in the a𓃲fternoon and a seller offers 700 shares of AAPL at $169. The IOC order, however, would not be filled because it was canceled immediately after not being filled earlier in the day.

The Bottom Line

An immediate or cancel order (IOC) is an order to buy or sell a security that will execute all or part immediately and then cancel any unfilled portion of the order, using time-in-force instructions. IOC limit orders protect investors during a fast-moving market. IOC market orders ensure a complete or partial ex🐓ecution in a strong market with high demand.