An immediate or cancel (IOC)
order
Order, ORDER or Orders may refer to:
* Categorization, the process in which ideas and objects are recognized, differentiated, and understood
* Heterarchy, a system of organization wherein the elements have the potential to be ranked a number of ...
, also known as an "accept order",
is a finance term used in
investment banking
Investment banking pertains to certain activities of a financial services company or a corporate division that consist in advisory-based financial transactions on behalf of individuals, corporations, and governments. Traditionally associated with ...
or
securities transactions that refers "an
order
Order, ORDER or Orders may refer to:
* Categorization, the process in which ideas and objects are recognized, differentiated, and understood
* Heterarchy, a system of organization wherein the elements have the potential to be ranked a number of ...
to buy or sell a
stock
In finance, stock (also capital stock) consists of all the shares by which ownership of a corporation or company is divided.Longman Business English Dictionary: "stock - ''especially AmE'' one of the shares into which ownership of a compan ...
that must be executed immediately". In case the entire order is not available at that moment for purchase a partial fulfillment is possible, but any portion of an IOC order that cannot be filled immediately is cancelled, eliminating the need for manual cancellation.
This "partial fulfillment" aspect is what differentiates IOC orders from
all or none
All or none (AON) is a finance term used in investment banking or securities transactions that refers to "an order to buy or sell a stock that must be executed in its entirety, or not executed at all". Partial execution is not acceptable; the orde ...
(AON) and
fill or kill A fill or kill (FOK) order is "an order to buy or sell a stock that must be executed immediately"—a few seconds, customarily—in its entirety; otherwise, the entire order is cancelled; no partial fulfillments are allowed.
Characterized as "extre ...
(FOK) orders, but the terms might be used interchangeably in some markets.
Benefits
It is considered a "clean, quick, and easy way to acquire securities or goods
hatcan save time and money" and the "chances of receiving at least a portion of the order within the time frame required is very good".
IOC orders are generally employed when ordering "large quantities of
stock
In finance, stock (also capital stock) consists of all the shares by which ownership of a corporation or company is divided.Longman Business English Dictionary: "stock - ''especially AmE'' one of the shares into which ownership of a compan ...
".
The term is also used to describe an order for goods, especially when vendors are concerned that "not all items and quantities can be honored within the amount of time required by the customer". Placing an IOC order allows them to fill the order incrementally.
See also
*
All or none
All or none (AON) is a finance term used in investment banking or securities transactions that refers to "an order to buy or sell a stock that must be executed in its entirety, or not executed at all". Partial execution is not acceptable; the orde ...
(AON) orders
*
Fill or kill A fill or kill (FOK) order is "an order to buy or sell a stock that must be executed immediately"—a few seconds, customarily—in its entirety; otherwise, the entire order is cancelled; no partial fulfillments are allowed.
Characterized as "extre ...
(FOK) orders
References
Stock market
Share trading
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