The full form of IOC in the share market is IMMEDIATE or CANCEL. IOC Order is a retention order specifying the order’s time length. The IOC Order has a time limit of “IMMEDIATE or CANCEL.” Hence, when you place an IOC Order, it will either execute or be cancelled in milliseconds.
Let us take a look at an example:
For instance, let’s say you place an IOC Buy Order for 100 Shares, and at that point in time, there are no shares available in the market. In such cases, the order is cancelled immediately.
In IOC Order, Partial Match is also possible.
Let’s understand how partial match works by keeping the above example in mind but this time, let’s assume there were 30 shares available in the market.
As only a partial portion of your order quantity is available, only that portion of “30 shares” will be executed and the remaining unmatched portion of 70 shares will be cancelled.
Type Of IOC Orders
You can combine the IOC Order with Limit and Market Orders:
When you use the Limit IOC Order, the order will be executed at a specific price of your choice.
And when you use the Market IOC Order, the order will be executed at the current best available price in the market.