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. Are stop orders only used for stocks?

    Stop orders can be used for a variety of securities and are not limited to stocks. They can be extended to other securities, ... Read Full Answer >>
  2. Should I enter a limit order to buy a position with a bid and ask that are far apart?

    You face the risk of losing the spread in a security with a bid and ask that are far apart when you enter a market order. ... Read Full Answer >>
  3. When should I use a trailing stop order?

    Trailing stop orders are used to limit losses and protect profits on a stock position. You should use trailing stop orders ... Read Full Answer >>
  4. How can I use a stop order to limit my losses on a long stock position?

    A stop order is a useful order type when you are trying to limit losses on your long stock position. When you are long a ... Read Full Answer >>
  5. What is the difference between a stop and a market order?

    A stop order and a market order are different order types that dictate how to enter and execute trades. Traders and investors ... Read Full Answer >>
  6. 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 >>
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. Investing Basics

    Explaining Buy Limit Orders

    A buy limit order allows traders and investors to specify the price that they are willing to pay for a security, such as a stock.
  3. 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 ...
  4. Trading Strategies

    Patience Is A Trader's Virtue

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

    Narrow Your Range With Stop-Limit Orders

    With stop-limit orders, buyers protect themselves from prices too high for their tastes.
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. 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.

You May Also Like

Hot Definitions
  1. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure ...
  2. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  3. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  4. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  5. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  6. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
Trading Center