Definition
An Immediate or Cancel (IOC) order requires any portion of the order that can be filled immediately to be executed, with the remaining unfilled portion canceled. Unlike Fill or Kill orders, IOC orders accept partial fills. This order type is useful when getting some execution is preferred over none, but waiting for full execution is not acceptable. IOC orders help minimize market impact and reduce the risk of adverse price movements.
Example
You place an IOC order for 1,000 shares at $50. Only 600 shares are immediately available at that price. You receive 600 shares and the remaining 400-share order is automatically canceled.
FAQ
What is Immediate or Cancel (IOC)?
An order requiring immediate execution with any unfilled portion canceled.
Why is Immediate or Cancel (IOC) important?
Immediate or Cancel (IOC) helps investors evaluate trading mechanics and make more informed decisions.