In the share market, IOC stands for Immediate or Cancel. It means the order must be filled immediately; any unfilled portion is canceled right away.
There are two types of IOC orders: limit IOC orders, executed at a specified price or better, and market IOC orders, executed at the current market price.
A Day Order remains active for the entire trading day, whereas an IOC Order must be executed immediately.
A Day Order can be partially filled over the day, while an IOC Order can also be partially filled, with any unfilled portion canceled instantly.
The unfilled portion of a Day Order expires at market close, whereas the unfilled portion of an IOC Order is canceled immediately.
A GTC Order remains active until canceled by the trader, whereas an IOC Order must be executed immediately or canceled.
A GTC Order can be partially filled over multiple trading sessions, while an IOC Order can also be partially filled, with any unfilled portion canceled instantly.
The GTC Order requires manual cancellation by the trader, whereas the unfilled portion of an IOC Order is canceled immediately.
IOC orders are ideal for quick execution in volatile markets or rapid price movements. They are filled immediately or canceled, letting traders act swiftly or reassess.