Next video:
Loading the player...

A trader places an immediate-or-cancel order to immediately execute a trade in full or in part. Any part of the order that remains unfulfilled is canceled.

For example, George the investor wants to buy shares of XYZ Corporation, whose stock has become volatile in recent days. George believes XYZ’s shares are going to rise, and he likes the current price. So he places an immediate-or-cancel order with his broker to buy 100 shares at $25 apiece. But a large demand for XYZ limits the number of shares George’s broker can buy at $25. By filling the order immediately, the broker buys 80 shares at $25 apiece. The order for the other 20 shares is canceled.

When a trader submits an order to buy or sell a security, he can specify the order type and its duration. While market orders go straight to the floor for execution with no restrictions, limit orders define the acceptable levels for the selling price or amount of shares purchased.

Other types of limit orders that are based on time considerations include fill-or-kill orders, which mandate that if the order is not executed in full and immediately, it will cancel. An all-or-none order must be executed in full, but not immediately. Day orders expire at the end of trading day. Good-‘til-canceled orders remain in effect until the trade is executed or canceled.

Active traders who do not want their orders to remain in the system will typically use immediate-or-cancel orders.

Related Articles
  1. Investing

    The Basics of Trading a Stock: Know Your Orders

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

    Explaining Market Orders

    A market order is the most common order used to purchase a financial security.
  3. Trading

    NYIF Instructor Series: "Fill or Kill" Order

    In this short instructional video Anton Theunissen explains what the "fill or kill" order is.
  4. Investing

    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 ...
Hot Definitions
  1. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  2. Absolute Advantage

    The ability of a country, individual, company or region to produce a good or service at a lower cost per unit than the cost ...
  3. Nonce

    Nonce is a number added to a hashed block, that, when rehashed, meets the difficulty level restrictions.
  4. Coupon

    The annual interest rate paid on a bond, expressed as a percentage of the face value. It is also referred to as the "coupon ...
  5. Socially Responsible Investment - SRI

    Socially responsible investing looks for investments that are considered socially conscious because of the nature of the ...
  6. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
Trading Center