What is an “immediate or “cancel” order (IOC order) with reference to stock markets?

A stock trading order known as an Immediate or Cancel (IOC) order instructs the broker to complete the deal right away, either in full or in part. Any part of the order that cannot be completed quickly will be cancelled right away if the broker is unable to promptly execute the entire transaction.

This implies that the order will either be carried out fully and immediately, or it won’t be carried out at all. When an investor wishes to purchase or sell a stock at a specified price, but only if the transaction can be executed instantly, they often utilize an IOC order.

For example, if an investor places an IOC order to sell 1,000 shares of a stock at INR 50 per share, the broker will attempt to sell all 1,000 shares immediately at INR 50 per share. If the broker is only able to sell 800 shares at INR 50 per share, the remaining 200 shares will be immediately cancelled.

It’s crucial to remember that an IOC order may only result in partial or even no filling.