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What is IOC in Share Market?

•6 min read•by Angel One
IOC is a type of market order that helps traders achieve speed and clarity in their trading. It is executed as soon as it has an available quantity, and the others are rescinded without delay.
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The share market is a high-speed moving market because the prices can vary after a few seconds as many people trade simultaneously. To traders who make multiple orders within the day, it may seem cumbersome to follow the prices and execution.   

This is where an IOC in a share market order can come in play. It enables one to make a trade attempt in the present market condition without the need to wait. The order does not remain pending until it is executed immediately. This assists the traders to stay out of uncertainty as well as maintain decisions aligned with the real-time price movement. 

Key Takeaways 

  • An IOC order requires the trade to be processed the moment it reaches the exchange; if it cannot be filled instantly, it is automatically cancelled. 

  • Unlike "Fill or Kill" orders, an IOC allows for partial execution where the available quantity is bought/sold and the remaining balance is discarded. 

  • IOC orders are "zero-duration" instructions that do not stay in the order book, meaning they never remain pending or wait for the market to move. 

  • These orders protect traders from "slippage" and unexpected price swings by ensuring they aren't left with open positions in a volatile market. 

What is IOC in the Share Market?

An IOC in the share market, or Immediate or Cancel order, is a type of instruction used to buy or sell securities in the share market with immediate effect. Once placed, the order attempts execution instantly at the available price.   

If the order does not execute fully at that moment, the unfilled portion gets cancelled automatically, without any action from the trader. An IOC is a zero-duration order, as it does not remain active in the system. Traders can place IOC orders as market orders or limit orders, depending on whether price control or speed is the priority. 

When is an IOC Order Most Useful? 

Now that you know the meaning of IOC in the share market, you can understand when to use an IOC order.  

The best time to issue an IOC order is when you want to make a large order but not influence the market by being “present” for long. The conditions for partial fulfilment mean that an IOC is flexible and will allow you to get the best you can from the market.  

You can quickly issue an IOC from your online trading platform. You can build an IOC order into your programs and trade effectively. When you have multiple securities to trade in but lack the time and effort to monitor each, you can set an IOC order for specific securities. 

How is an IOC Different From a Day Order? 

The difference between an IOC order and a day order is simple. A day order expires at the end of the trading day if unfulfilled, while an IOC is cancelled as soon as the unavailability of the security is known or within a few milliseconds. 

How to Place IOC Orders in the Stock Market? 

Follow these steps to place an IOC order.  

  • Choose a trading platform: Choose a reputed stockbroker to open your Demat and trading accounts. You must do research on their charges, market reputation, and online trading platform before finalising.   

  • Educate yourself: Gather knowledge about different types of orders and their applications. Understand the factors you should consider before placing an order.  

  • Select stocks: Choose the stock you want to trade. Before placing an order, review their trading history and price charts.   

  • Choose order type: On the trading platform, choose “Immediate or Cancel (IOC)” as the order type. While specifying the order type, be sure to: 

  • Specify buy or sell order 

  • Enter the quantity 

  • Set price 

  • Review order details: Finalise the order and double-check the details before placing the order. Ensure that the stock symbol, quantity, order type (IOC), and price are all correct. 

  • Confirmation: After submitting the order, you’ll receive a confirmation on the platform confirming that the IOC order has been placed.  

  • Monitor execution: Check the trading platform to see if the IOC order gets executed. You might need to place a new order or adjust the price to match market conditions if the IOC order is only partially executed and you still wish to trade the remaining quantity.  

Features of the IOC Order

  • Speedy execution: This type of order emphasises speed. These are helpful for traders who are busy or want to buy or sell immediately. When you place an IOC order, you’re signalling to the market that you want to execute the trade as quickly as possible. 

  • Limit or market order: Traders can place IOC orders either as a limit or market order. IOC market orders allow traders to buy or sell shares at the current market price. Conversely, a limit order allows the trader to set a price to execute the order. 

  • Precision pricing: Placing an IOC order allows traders to avoid paying more than they intend to when the price rises.  

  • Risk management: IOC orders can be used as a risk management technique. By setting the price level and quantity, you can control the potential outcome of the trade.  

  • Market volatility management: While an IOC ensures an immediate attempt, it does not "guarantee" execution during extreme volatility; if no shares are available at your specified limit price, the entire order will simply cancel.   

  • Flexible quantity in low-volume stocks: Be aware that in low-volume (illiquid) stocks, large IOC orders often lead to significant cancellations because there aren't enough counterparties to meet the demand instantly. 

  • Customise trading strategy: IOC orders can be tailored to fit various trading styles. You can adjust IOC if you are an intraday trader looking for quick in-and-out or an investor who wants to make precise entries and exits. 

  • Transparency: Transparency is provided in the form of immediate confirmation of what was filled versus what was cancelled, rather than just the price itself. 

  • Technology-driven: In 2026, these are a standard feature in algorithmic and high-frequency trading (HFT) to capture transient liquidity without leaving a footprint on the order book. 

Day Order vs IOC Order in Trading 

In an unsold value, a day order remains open until the expiry of the trading session. It waits within the system and fills in case there are matching prices. The behaviour of an IOC order is different. Day orders are suitable for organised trades with a loose timing. A suit is ordered by the IOC when traders require fast confirmation. The major distinction is between waiting and immediacy. The decision between them will be based on the urgency, comfort of the price and the necessity to keep an open exposure.  

Also Read: Types Of Orders in Stock Market 

Flexibility with Immediate or Cancelled (IOC)

The IOC orders provide flexibility as it eliminates the waiting time between the trade decision. As soon as it is put in place, the outcome becomes apparent. The order succeeds or simply does not exist anymore. This transparency allows traders to respond swiftly. IOC is effective in the volatile market where prices change rapidly. It is also applicable in partial execution, whereby partial liquidity is tolerable. IOC can cancel the unfilled part, which would prevent the accidental fills in the future at the unwanted prices. The structure enables controlled trading without necessarily having to watch open orders at all times. 

Conclusion 

You are now equipped with a basic understanding of an IOC order. With this confidence, you can take the next step of issuing trading orders from your online trading account and building your finances. 

FAQs

The full form of IOC is Immediate Or Canceled. IOC allows the investors to buy or sell the share when the order is placed in the market. If it fails, the order will be removed from the system. As it is a duration order, it gets cancelled if not executed immediately.
An IOC should be used for the following cases: When an investor places several orders but cannot monitor each trade simultaneously. IOC helps reduce the risk of forgetting to cancel an order during the trading hour. When an investor wants to place an order without controlling the prices.
In simple words, a day order is an order that expires if not used before the end of the trading day. However, a day order can also be a limited order but will expire when the trading ends in the share market.
This kind of order is mainly placed by investors when they are going to make a large order. This is mainly done because they do not want to attract the market by being “active” for a long time.

An IOC limit order is a combination of a price control plus an immediate execution. Under an IOC in a share market limit order, the trader specifies a certain price. The exchange will only transact when there are matching orders that are at that price or a better price. Every amount that cannot be matched is cancelled. This will enable disciplined prices without delays. It applies to traders An IOC limit order is a combination of a price control plus an immediate execution. Under an IOC in a share market limit order, the trader specifies a certain price. The exchange will only transact when there are matching orders that are at that price or a better price. Every amount that cannot be matched is cancelled. This will enable disciplined prices without delays. It applies to traders

Day, IOC and GTD orders vary in time. A day order is active during a session. In a share market order, an IOC terminates upon the attempt of an execution. A GTD order is not closed under a determined date. IOC focuses on speed. The day is concentrated on the same-day opportunity, whereas GTD is concerned with scheduled time. They both represent varying trading styles. Traders are selective in regard to urgency, ability to monitor and comfort with pending exposure in changing market conditions. 

An IOC in the share market does not cause a movement of prices. It is merely equivalent to existing liquidity. It is not visible in the order book, and therefore, it does not affect the visible demand and supply. Big IOC orders can partially fill when there is liquidity, but it does not exert future pressure. The price effect will also be limited to the amount that is available at that time. The primary impact of IOC is seen on the certainty of execution and not in the direction of the market. 

An IOC in zero refers to placing an IOC in the share market order without brokerage charges under certain pricing plans. The order type remains the same. Only the cost structure differs. Execution still follows immediate matching and cancellation rules. Traders choose this when cost sensitivity matters for frequent trades. Zero brokerage does not change execution priority, liquidity access, or price matching. It only reduces transaction cost while keeping order behaviour unchanged. 

The decision on IOC and the day is based on urgency. The IOC in the share market order is suitable for traders who want immediate clarity and no outstanding exposure. A day order would be appropriate for the traders who are willing to wait till the end of the session. IOC is more suited to speedy markets. Day orders are suitable in the stable price regime. The traders tend to change between the two depending on the market conditions, availability of time, and their tolerance for open orders. 

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