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Immediate-or-Cancel Orders (Accept Order)

Moneyzine Editor
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Moneyzine Editor
1 mins
January 19th, 2024
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Immediate-or-Cancel Orders (Accept Order)

Definition

The term Immediate-or-Cancel refers to broker instructions to buy or sell a security instantly, or cancel the order. From a practical standpoint, an Immediate-or-Cancel order specifies the instruction will remain active for several seconds before being filled or canceled.

Explanation

Also referred to as an Accept Order, an Immediate-or-Cancel (IOC) order is typically used when referring to stocks. An IOC order instructs a broker to buy or sell a predetermined amount of securities or cancel the transaction. A partial sale or purchase is considered acceptable. This is what distinguishes an Immediate-or-Cancel order from Fill-or-Kill.

While an All-or-None order remains active until cancelled, an Immediate-or-Cancel order is cancelled instantly if the securities are not available. If the order is partially filled, the unfilled portion of the order is canceled if the securities are not available. IOC orders are usually large transactions placed by institutional investors, typically paired with a limit or market order. As it the case with Good-Til-Canceled, Immediate-or-Cancel specifies the term of the order.

Related Terms

  • All-or-None Orders (AON)
    The term All-or-None order refers to broker instructions to buy or sell a quantity of securities in their entirety, or none at all. If an All-or-None order cannot be executed immediately, it remains open until it is executed or is closed at the end of the trading day.
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    Moneyzine Editor
    January 5th, 2024
  • Fill-or-Kill Orders (FOK)
    The term Fill-or-Kill refers to broker instructions to buy or sell a security immediately, and in its entirety, or cancel the order. From a practical standpoint, a Fill-or-Kill order specifies the instruction will remain active for several seconds before being filled or canceled.
    Moneyzine Editor
    Moneyzine Editor
    January 18th, 2024
  • Good-Til-Canceled Orders (GTC)
    The term Good-Til-Canceled refers to broker instructions to buy or sell a security at a fixed price, and the order will remain active until the investor cancels it or it is filled. From a practical standpoint, a Good-Til-Canceled order specifies the instruction will remain active even if it is not filled on the same trading day.
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    Moneyzine Editor
    January 19th, 2024
  • The term stop order refers to instructions sent to a broker to buy or sell securities once the security reaches a specified price. When the price point on a stop order is reached, it is converted to a market order.
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  • The term National Best Offer refers to the lowest available ask price, which is a consolidated value from all of the national stock exchanges. The National Best Offer is the lowest price sellers are willing to accept for a security such as a stock.
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    Moneyzine Editor
    September 20th, 2023
  • The term National Best Bid refers to the highest available bid price, which is a consolidated value from all of the national stock exchanges. The National Best Bid is the maximum price buyers are willing to pay for a security such as a stock.
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    Moneyzine Editor
    September 20th, 2023
  • Market Order (Unrestricted Order)
    The term market order refers to instructions sent to a broker to buy or sell a security immediately at the best available price. Since there are no restrictions on the selling or purchase price of the security, a market order is oftentimes immediately executed.
    Moneyzine Editor
    Moneyzine Editor
    January 24th, 2024
  • Limit Order
    The term limit order refers to instructions sent to a broker to buy or sell securities at a specific price or better. Since a limit order is not a market order, there is no guarantee the transaction will occur.
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    Moneyzine Editor
    January 23rd, 2024
  • Day Order
    The term day order refers to broker instructions to buy or sell a security that automatically expires at the end of the trading day if not executed. Unless specified by the investor, the default orders to buy and sell stocks at most brokerage houses are day orders.
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    Moneyzine Editor
    January 15th, 2024
  • The term One-Cancels-the-Other refers to instructions sent to a broker that consist of two active orders; if either is executed, the second is automatically inactivated. One-Cancels-the-Other orders are oftentimes used by traders to mitigate risk in a volatile market.
    Moneyzine Editor
    Moneyzine Editor
    September 20th, 2023
  • Good-Til-Date Orders (GTD)
    The term Good-Til-Date refers to instructions sent to a broker that specify how long an order will remain active if it is not fully executed or filled. Good-Til-Date orders are one of several types of Time-in-Force orders, which provide traders with additional flexibility beyond day orders.
    Moneyzine Editor
    Moneyzine Editor
    January 19th, 2024
  • At-the-Opening Orders
    The term At-the-Opening refers to instructions sent to a broker to buy or sell securities at the beginning of the trading day. If an At-the-Opening order cannot me executed as soon as the market opens, then it will be canceled.
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    Moneyzine Editor
    January 8th, 2024
  • The term Time-in-Force refers to broker instructions that indicate how long an order will remain active before it expires or is executed. Time-in-Force orders provide investors with a mechanism to control the duration parameter for a trade.
    Moneyzine Editor
    Moneyzine Editor
    September 21st, 2023

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