The beauty of an IOC is that you don’t have to monitor it. The system handles it instantly. Whether you're buying or selling, only the part that finds an immediate match gets executed. The rest is gone, making it perfect when speed is your top priority.
What Is the Need for an IOC Order?
Ever needed to make a trade fast without leaving an order open? That’s exactly what an IOC order is for. It's great for trades that only last a few seconds, and timing is everything.
IOCs are great for big orders because they don't show how big they are, which could change the price. You can do what's available without making a big deal out of it. They help you move quickly in markets that change a lot, and they are a lifesaver for traders who have a lot of open positions at once.
When Is an IOC Order Most Useful?
IOC orders are great when you're busy or the market is unstable. An IOC helps you get the suitable price right away in a market that moves quickly, even when prices change quickly.
If you prefer an automated, hands-off approach, IOC orders are a great fit. They remove the stress of manually tracking open orders. Even with a partial fill, the job is done instantly. This frees you up to focus on your trading strategy instead of micromanaging every single trade.
Features of IOC Order
Partial execution is allowed
Your order doesn't need to be filled completely. Whatever part finds an immediate match gets executed, and the rest is simply cancelled.
Extremely short life span
An IOC order is live for just a moment. If it isn't filled instantly, it vanishes from the system automatically.
Useful in high-speed markets
They are perfect for fast-paced markets. Any delay could mean missing your price, and IOCs prevent that from happening.
Reduces manual tracking
Forget about checking on your order later. The system takes care of it all in a flash, removing any unfilled parts.
Helps manage large trades
They are great for breaking up big trades. You can buy or sell in pieces without sending a single large order that could change the price.
How to Place IOC Orders in the Stock Market?
Use your trading platform
Log into your trading account and pick your stock. Just choose 'IOC' from the order type menu and then enter your quantity and price.
Choose between buy or sell
Decide if you're buying or selling. Double-check that all the order details correctly reflect your intended trade before proceeding.
Set your price limit
You must enter a specific limit price for your trade. IOC orders can't be used as simple market orders, as a price limit is required.
Confirm order placement
Give everything one last look, then hit confirm to submit your IOC order. Your platform will instantly send it to the exchange for execution.
Review execution details
Once submitted, only the matched portion is filled. The rest is cancelled. You can see the final details in your order history.
Conclusion
IOC orders are designed for speed, so you can trade quickly without leaving any loose ends.This lets you concentrate on your strategy, not on babysitting open orders. Even with a partial fill, the transaction is completed instantly.
Learning how to use IOC orders is a great way to make your trading easier and cut down on the need to check on things all the time. With today's easy-to-use platforms, it's easier than ever to place and keep track of these orders.