Immediate Or Cancel Order - IOC

AAA

DEFINITION of 'Immediate Or Cancel Order - IOC'

An order to buy or sell a security that if not immediately filled, will be canceled. An IOC order is one of several "duration orders" that investors and traders can use to specify how long the order will remain active in the market and under what conditions the order will be canceled.

An IOC order requires all or part of the order to be executed immediately, otherwise the order (or any unfilled parts of the order) will be canceled. Partial fills are accepted with this type of order duration, unlike a fill-or-kill order, which must be filled immediately in its entirety or be canceled.

INVESTOPEDIA EXPLAINS 'Immediate Or Cancel Order - IOC'

An IOC duration may be specified when a large order is submitted to the market. Filling a large order may be difficult; to avoid having the order filled at a wide variety of prices, an IOC will automatically cancel any part or the order that does not fill right away. When a trader or investor submits an order to buy or sell a security or other instrument, he or she can specify both the type of order - such as market or limit - and the duration of the order. Order entry interfaces that are part the various available trading platforms allow traders and investors to choose from a number of durations in addition to the immediate-or-cancel orders. Other durations include day (automatically canceled at the end of the regular trading session); good-till-canceled (remains active until the trade is executed or canceled); and good-till-date (remains active until a user-specified date, unless it has been executed or canceled).

RELATED TERMS
  1. Limit Order

    An order placed with a brokerage to buy or sell a set number ...
  2. Cancel Former Order - CFO

    An order from an investor to a broker, to cancel a previously ...
  3. Order

    An investor's instructions to a broker or brokerage firm to purchase ...
  4. Stop Order

    An order to buy or sell a security when its price surpasses a ...
  5. Sweep-To-Fill Order

    A type of market order in which the broker splits an order into ...
  6. Good This Week - GTW

    A market order that is only valid in the week of its placement. ...
RELATED FAQS
  1. How can I use a buy limit order to buy a stock?

    An investor uses a buy limit order to buy a stock at a specific price or better price. Unlike a market order that takes the ... Read Full Answer >>
  2. What is the difference between a buy limit and a stop order?

    A buy limit order is used when an investor wants to open a long position in a stock at a certain price, while a stop order ... Read Full Answer >>
  3. What are some ways to reduce downside risk when holding a long position?

    A trader seeking to minimize his downside risk in an existing long position can do a number of things to protect a portion ... Read Full Answer >>
  4. How do I determine where to set my stop loss?

    Determining stop-loss order placement is all about targeting an allowable risk threshold. This price should be strategically ... Read Full Answer >>
  5. What types of investors are best-suited for stop loss orders?

    From conservative investors to highly speculative day traders, no one likes to see a loss in a portfolio. There are several ... Read Full Answer >>
  6. What are the advantages of a limit order over a market order?

    The primary advantage of a limit order over a market order is that the limit order guarantees market entry at the trader's ... Read Full Answer >>
Related Articles
  1. Active Trading Fundamentals

    The Basics Of Trading A Stock

    Taking control of your portfolio means knowing what orders to use when buying or selling stocks.
  2. Trading Strategies

    Making The Trade: Understand Order Types

    Buying and selling stock can be a lot like buying or selling a car. Traders should use and understand tools such as market orders, limit orders, day orders, and good-'til-canceled orders to ensure ...
  3. Trading Strategies

    Patience Is A Trader's Virtue

    Waiting may be the biggest key to reeling in that trophy investment.
  4. Investing Basics

    Narrow Your Range With Stop-Limit Orders

    With stop-limit orders, buyers protect themselves from prices too high for their tastes.
  5. Trading Strategies

    How to Use Trailing Stops

    A trailing stop is an order to buy or sell a security if it moves in an unfavorable direction.
  6. Active Trading

    Pinpoint Winning Trade Entries With Filters And Triggers

    These tools will help you enter at high-probability points and ensure you trade within your set strategy.
  7. Active Trading Fundamentals

    Trailing-Stop Techniques

    The important decision to exit a position must be based on more than emotion if you want to be a disciplined trader.
  8. Investing

    Stop Limit Orders

    A stop limit is an order to sell or buy a stock once it reaches a certain level, but only if the shareholder can obtain a specified price.
  9. Investing Basics

    Understanding The Basics of A Stop-Limit Order

    There are many techniques used by investors and traders to restrict losses or lock in gains. The stop-limit order is one such technique.
  10. Investing Basics

    Stop Loss Order Strategy

    A stop loss order is an order placed with a broker to sell a stock immediately if it drops to a certain price. It's a common way for investors to protect themselves from the possibility of a ...

You May Also Like

Hot Definitions
  1. Fisher Effect

    An economic theory proposed by economist Irving Fisher that describes the relationship between inflation and both real and ...
  2. Fiduciary

    1. A person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets ...
  3. Expected Return

    The amount one would anticipate receiving on an investment that has various known or expected rates of return. For example, ...
  4. Carrying Value

    An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance ...
  5. Capital Account

    A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public ...
  6. Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. ...
Trading Center