Mon. Oct 2nd, 2023
What is IOC in the Share Market?

Understanding what an IOC is in the share market can be confusing, especially for new investors. In this blog, we will explain what an IOC order is, how it works, and why it is important to know about it when investing in the share market.

Immediate or canceled (IOC) orders are a type of stock market order that must be executed immediately, or else it will be canceled. This type of order is typically used when the investor wants to buy or sell stock quickly and is willing to pay a higher price for the speed of the transaction. The IOC meaning in trading is the same as in the stock market.

In volatile markets, investors employ IOC orders to offset current market pricing. A fundamental grasp of the share market is necessary to comprehend IOC regulations. Entry barriers have been lessened with the rise of online trading accounts that are simple and convenient to create. There is no assurance that an order you place to purchase or sell will be completed if you register an online trading account.

The number of individuals attempting to purchase or sell shares may vary. If there are not enough vendors to satisfy your order, you will have to wait for it to be finished.

What is IOC?

An Immediate or Cancelled (IOC) order is a market order to be executed immediately at the best price. If the order can’t be executed immediately, it is canceled. An IOC order is typically used when the investor wants to buy or sell a large number of shares and wants to ensure that the order is executed immediately.

Let’s take an example to understand IOC meaning in the share market better.  For instance, let’s say you make an IOC order for 100 shares of corporation XYZ. However, the shares are now unavailable. Because you made an IOC order, the order will immediately cancel in this situation. An IOC order has two possible outcomes: execution or cancellation. If a trader has placed an IOC order, they do not need to remain glued to their screen to cancel it. Additionally, it is known as a duration order, denoting the brief duration of the order.

What is the need for an IOC?

An IOC order is typically used when an investor wants to buy or sell stock quickly and is willing to pay a premium for the ability to do so.

While an IOC order is not guaranteed to be filled, it is typically filled very quickly, as there are usually many willing buyers or sellers at the current market price. However, if the market price moves away from the price at which the order was placed, the order may not be filled.

IOC orders can be placed for buying and selling shares and used in regular stock trading and trading penny stocks.

When is an IOC order effective?

There are two orders in the share market: immediate or canceled (IOC) orders and limit orders. IOC in the share market is used to buy or sell shares that must be executed immediately at the best price, whereas a limit order is to sell or purchase shares at a specified price or better.

IOC orders are commonly used when investors want to buy or sell shares quickly without waiting for the price to move in their favor. However, because IOC orders must be executed immediately, they may not always be filled at the desired price. In addition, IOC orders may be subject to higher transaction fees than limit orders.

If you are considering placing an IOC order, you should check with your broker to see if they offer this type of order and what fees may be associated with it.

Also Read: What is Tpin in a Demat Account?

Advantages of IOC Orders

IOC orders offer several advantages to investors, particularly in volatile markets. Here are some of the benefits of using IOC orders:

  • Fast Execution: IOC orders are designed to be executed immediately if possible, ensuring that investors get the best possible price for their shares. This is particularly useful in fast-moving markets where prices can change rapidly.
  • Protection of Investments: IOC orders can be used to limit losses by setting a specific price at which shares are sold. This protects the investor’s investment by ensuring that shares are not sold at a lower price than expected.
  • Efficient Trading: IOC orders allow investors to execute trades quickly and efficiently, without having to constantly monitor the market. This is particularly useful for investors who have limited time to dedicate to trading.
  • Cost Control: IOC orders can help investors control costs by ensuring that shares are bought or sold at the desired price. This is particularly useful in markets with high transaction costs, as it helps investors avoid paying more than they need to.
  • Flexibility: IOC orders offer investors a high degree of flexibility, as they can be used to buy or sell shares at any time, regardless of market conditions. This allows investors to take advantage of opportunities as they arise.


IOC in the share market is incredibly successful for active traders that trade in various securities, quickly purchase and sell, such as with options trading, and in high volumes with illiquid equities. While IOC orders can be helpful, they also come with risks.

Because the order must be executed immediately, it may not be filled at the desired price. In addition, if the stock market is moving quickly, an IOC order may not be filled.

Considering using an IOC order, it is important to carefully weigh the risks and benefits. It would be best if you also had a clear understanding of how the stock market works and how prices fluctuate.

It should be utilized correctly to maximize its benefits and avoid manipulating the stock price. Active traders who lack time to monitor their orders can save a ton of time by using it.

By Vivz

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