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Posted on  October 4, 2025 under  by Ayush Maurya

IOC Meaning in Share Market: Guide to IOC Orders

Have you ever placed a trade in the stock market and noticed that it didn’t go through as you expected? Sometimes, an order gets executed only partly, and the rest disappears in seconds. This is where IOC meaning in share market becomes important.

IOC order stands for Immediate or Cancel. Don’t worry, it’s not as complicated as it sounds. In this blog, I’ll explain Immediate or Cancel orders in very simple words, what they are, how they work, and why traders use them. By the time you finish reading, you’ll know exactly when this order can help you and when it’s better to avoid it. 

What Is IOC in the Share Market?

In the share market, IOC stands for Immediate or Cancel. As the name suggests, this type of trading order has only two possibilities: it gets executed instantly (either fully or partially), and whatever portion of the order cannot be matched at that moment is cancelled automatically. Nothing is left pending in the order book for later execution.

Think of it like this—imagine you walk into a fruit shop and ask for 5 apples. The shopkeeper only has 3 available right now. Instead of waiting for him to bring 2 more later, you take the 3 immediately and forget the rest. That’s exactly how an IOC order in the share market works: whatever is available at your price is executed instantly, and the rest gets cancelled in seconds.

Why Traders Use Immediate or Cancel Orders

  • Speed matters in trading: In stock markets, especially in intraday or volatile sessions, even a few seconds can make a difference in price. IOC ensures you either get your trade done instantly or not at all.
  • Avoids unwanted execution: Since the unfulfilled part of the order gets cancelled, there’s no risk of it executing later at a price you didn’t want.
  • Helps in fast-moving stocks: In highly liquid stocks or futures and options contracts, this orders give you more control over execution without leaving pending positions.

Key Things to Remember About IOC Orders

  • IOC is valid only for that moment. If it doesn’t execute right away, it disappears—no waiting, no carrying forward.
  • It can be used for both buying and selling. For example, selling instantly in a falling market or buying quickly before the price shoots up.
  • Not suitable for long-term investors. Immediate or Cancel order is mostly used by traders who focus on speed, not by those who are okay with waiting for their price.

Types of IOC Orders

In the share market, IOC orders mainly come in two types: Market IOC Orders and Limit IOC Orders. Both are designed to help traders get instant execution, but they work slightly differently depending on how you set your price.

1. Market IOC Order

A Market IOC Order means your trade will be executed immediately at the best available market price. You don’t set any specific price, the system automatically finds the current price and completes the trade as much as possible at that moment.

If the full quantity of shares is available, your entire order gets executed instantly. If only part of it is available, that portion is executed and the rest is cancelled.

Let’s say you want to buy 100 shares of Infosys. The current best market prices available are ₹1,650 for 40 shares and ₹1,652 for 60 shares. Your Market Order will buy all 100 shares instantly at those prices. But if only 60 shares are available, those will be bought, and the remaining 40 will be automatically cancelled.

2. Limit IOC Order

A Limit IOC Order allows you to decide the maximum price you’re willing to pay (for buying) or the minimum price you’re willing to accept (for selling). The system will execute as much of the order as possible at that price or better and cancel whatever can’t be matched immediately.

You place an order to buy 100 shares of TCS at ₹3,600 (your limit price). If only 50 shares are available at ₹3,600, those 50 will be purchased instantly, and the rest of your order (50 shares) will be cancelled right away.

Features of IOC Orders

Here are the key features of Immediate or Cancel orders in the share market that make them different from other order types:

  • Instant Action: The order is executed immediately after being placed; there’s no delay or waiting period.
  • Automatic Cancellation: Any unexecuted part of the order is cancelled on its own within seconds.
  • No Queuing in the Order Book: This orders don’t sit idle in the system like day orders.
  • Reduces Order Risks: Prevents pending orders from executing later at an unexpected price.
  • Used for Fast Decision-Making: Traders use This orders when quick market movements require immediate action.
  • Available Across Order Types: Can be used as both Market IOC and Limit IOC orders depending on your trading strategy.
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When Is an IOC Order Most Useful?

An IOC order is most useful when speed and certainty are more important than waiting for a perfect price. It’s a trader’s best tool in situations where even a few seconds can change the outcome of a trade.

Here’s when you should use Immediate or Cancel orders:

  • During high market volatility: When prices move up or down quickly, Immediate or Cancel order helps you grab available prices instantly before they change.
  • In intraday trading: Traders who buy and sell within the same day prefer IOC orders to avoid pending trades that might carry over or execute later at an unwanted price.
  • In highly liquid stocks: Stocks with large trading volumes execute faster, so IOC ensures instant fills without leftover pending orders.

How Is an IOC Different From a Day Order?

An Immediate or Cancel order is valid only for that moment — it either executes instantly or gets cancelled. A Day order, on the other hand, remains active until the end of the trading day if not executed immediately.

FeatureIOC OrderDay Order
Full FormImmediate or CancelValid for One Trading Day
Execution TimeExecutes instantly (within seconds)Can execute anytime during the trading day
Pending OrdersNot allowed — unfilled part cancelled instantlyUnfilled orders remain active till market closes
Validity in TradingValid only for a few seconds (immediate)Valid till the end of the trading day
Best ForFast-moving, intraday, or volatile marketsLong-term or patient traders waiting for price levels
Risk FactorLow risk of unwanted later executionMay execute later at an undesired price if market moves
ExampleBuy 100 shares instantly — only 60 available → remaining cancelledBuy 100 shares at ₹200 — order stays open till market closes

How To Place IOC Orders

Placing an IOC order in the share market is simple once you know where to look. Most Indian trading platforms allow you to place this order directly through their web or mobile apps. The process is nearly the same across all platforms, you just have to select the right order type and validity.

  1. Login to Your Trading Account: Open your preferred trading app (for example, Shree Varahi) and log in to your account.
  2. Search for the Stock You Want to Trade: Type the name or symbol of the company you wish to buy or sell, such as TCS, Infosys, or Reliance Industries.
  3. Click on ‘Buy’ or ‘Sell’ Option: Choose whether you want to place a buy IOC order or a sell order, depending on your trading goal.
  4. Choose Order Type
    • Select between Market Order or Limit Order (depending on how you want your order executed).
    • If you select “Market Order,” your order will execute instantly at the best available price.
    • If you select “Limit Order,” you can set your desired price, and only the available quantity at that price will be executed.
  5. Set the Quantity of Shares: Enter how many shares you want to buy or sell, for example, 50 or 100 shares.
  6. Select ‘Validity’ as Immediate or Cancel order: In the validity dropdown or settings option, choose IOC. This tells the system to execute your trade immediately and cancel any unfilled part.
  7. Review and Confirm Your Order: Double-check all the details — stock name, quantity, price, and validity type. Once confirmed, click Submit Order or Place Order.

Limitations of IOC Orders

  • Not Suitable for Illiquid Stocks: Immediate or Cancel orders work best in stocks that have high liquidity, meaning many buyers and sellers are active. If you place an this order in a low-volume stock, chances are it won’t get executed at all, as there may be no matching orders available at that moment. 
  • Risk of Partial Execution: Since an IOC order executes only what’s available instantly, you may end up with partial fills. For example, if you try to buy 500 shares but only 200 are available at your price, you’ll get those 200, and the remaining 300 will be cancelled.
  • Not Ideal for Long-Term or Swing Traders: These orders are meant for short-term traders and intraday players who want fast trades. If you’re a long-term investor or someone who doesn’t mind waiting for the right price, this isn’t suitable.
  • Can Lead to Missed Opportunities: Sometimes, the market may briefly move against your price but return to it a few minutes later. With an IOC order, your order would already be cancelled by then, meaning you’d miss that opportunity. Day orders or GTC (Good Till Cancelled) orders might perform better in such cases.
  • No Option to Modify or Retry: You cannot modify or reattempt it. If it doesn’t execute, you’ll have to manually place the order again. This can be frustrating for beginners who aren’t used to such fast order cancellations.

What Is IOC Validity in Trading?

The validity of an IOC order in trading is only for that exact moment when the order is placed. As soon as you submit an order, the exchange tries to execute it instantly. If the trade can’t be matched at that very moment—either fully or partially—the unfilled portion gets cancelled automatically within seconds. In short, its validity doesn’t last for minutes or hours like Day or GTC orders; it’s valid only for a split second during placement. This ultra-short validity makes this order ideal for fast-moving or intraday trading where quick action matters most.

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Conclusion

To sum it up, the IOC meaning in share market is simple—it’s an order that focuses on speed, certainty, and instant action. Traders use this when they want quick execution without leaving pending orders behind. While it’s not suited for every trading style, it’s a smart choice for active and intraday traders who need to move fast in volatile markets. Always use Immediate or Cancel orders strategically, especially in highly liquid stocks where execution chances are higher.

Frequently Asked Questions

  1. What does IOC stand for in Share Market?

    IOC stands for Immediate or Cancel. It’s an order type where a trade must be executed instantly, either fully or partially, and if it can’t be done at that moment, the remaining quantity is automatically cancelled.

  2. What is IOC validity in trading?

    IOC validity lasts only for a split second—just long enough for the order to execute instantly. If it can’t be matched immediately, the order is cancelled on its own without staying in the order book.

  3. Is Immediate or Cancel order good for intraday trading?

    Yes, it is perfect for intraday traders who need fast execution and don’t want their orders to remain pending. They help capture quick market moves without the risk of delayed execution.

  4. How does an IOC order differ from a limit order?

    An Immediate or Cancel order focuses on instant execution, while a limit order waits until the stock reaches the set price. IOC executes immediately at or below your limit price, cancelling any unfilled quantity right away.

  5. Can I place IOC orders in futures and options (F&O)?

    Yes, most trading platforms on NSE and BSE allow Immediate or Cancel orders in the F&O segment. They’re especially useful when you want immediate trade execution in highly volatile contracts.

Disclaimer: This article is intended for educational purposes only. Please note that the data related to the mentioned companies may change over time. The securities referenced are provided as examples and should not be considered as recommendations.
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Written by Ayush Maurya

Ayush is a seasoned financial markets expert with over 3years of experience. He has a passion for breaking down complex financial concepts into simple, digestible terms. Through his 50+ articles, Ayush has helped countless individuals navigate the often intimidating world of finance.

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