Immediate Or Cancel Order - IOC

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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.

BREAKING DOWN '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).

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