The stock market is fast-paced and there are many traders trading during market hours. It can be difficult for traders to track stock prices and make decisions about whether to purchase or sell securities. An IOC order, which is a.k.a. Cancel or Immediate order on the share market.
An IOC is one type of order that investors or traders can place in the stock market. An order stipulates that the order must be executed as soon as it is placed on the market. This means that you must buy or sell security within a short time. If it takes longer than this, it will be cancelled and it will no longer be a pending order. The investor does not need to intervene in cancelling the order.
An IOC can be described as a 'duration order'. This means that the investor determines the length of time the order will remain active on the market. An IOC is a zero duration' order because there is only a short time between its placement and execution.
An IOC order can be used as a market or limit order. An limit order is a restriction that allows you to sell/buy security at a specific price point. Market orders mean that the trade is executed at current price points.
Let's take, for example, the IOC market order you place to purchase 100 shares of XYZ. The order is instantly released to the market. If the order is not fulfilled, it will be cancelled. If only 10 shares are purchased, the order will be cancelled.
You now know the meaning of IOC on the share market. you can then understand when an IOC order should be used
An IOC order should be issued when you are looking to place a large order, but not to influence the market or stay "present" for too long. An IOC order will be flexible due to partial fulfillment and allow you to get as much market value as possible.
Your online trading platform allows you to quickly issue an IOC. It is possible to build an IOC order in your programs so that you can trade efficiently. You can create an IOC order to trade specific securities if you have many securities to trade but don't have the time or effort to monitor them all.
It is easy to tell the difference between an IOC and a day order. If unfulfilled, a day order will expire at the close of trading; an IOC will be cancelled when the security becomes unavailable.
Now you have a basic understanding of IOC orders. You can now confidently issue trading orders via your online trading account. This will help you build your financial resources.