What is IOC in Stock Market? A Beginner-Friendly Guide

Introduction

Imagine you’re at a food stall in a crowded market. You place your order and say, “If you don’t have it now, cancel it.” That’s exactly how IOC works in the stock market!

IOC, or Immediate or Cancel, is a type of stock market order where you say: “Buy or sell this now, or not at all.” No waiting. No partial promises. It's fast, direct, and powerful—just like snapping your fingers in a bustling market.

In this guide, we’re going to break it down in simple terms, without the intimidating jargon. Whether you're a curious beginner or someone interested in algo trading platforms in India, this article will help you understand the basics and beyond. We’ll also link how this tiny term—IOC—relates to the broader world of algorithmic trading software and why it’s important in your trading journey.

 Learn what IOC means in stock market. Also explore best algo trading software in India, algo trading platforms in India, and algorithmic trading software.

What is an IOC Order?

An IOC (Immediate or Cancel) order is a type of stock order where you instruct the system to execute it instantly. If the order can’t be fully or partially completed right away, the unexecuted portion is canceled automatically.

Think of it as saying, “If you can get this done NOW, do it. If not, forget it.”

How Does an IOC Order Work?

When you place an IOC order:

• It goes to the exchange instantly.
  
  

• If a matching order is found, the trade happens right away.
  
  

• If only part of it can be matched, that part is executed, and the rest is canceled.
  
  

• If none can be matched, the order is canceled altogether.
  
  

This is especially useful when time is money, like during a market opening rush.

IOC vs Other Order Types (Limit, Market, GTC)

While other orders wait or stay in the system, IOC orders are all about NOW.

Real-Life Example of IOC

Let’s say you want to buy 100 shares of Company A at ₹500. You place an IOC order.

• Only 60 shares are available at ₹500.
  
  

• The system buys those 60.
  
  

• The remaining 40? Cancelled.
  
  

No delay. No carry-forward.

When Should You Use an IOC Order?

You can consider IOC orders when:

• You’re trading in a volatile market.
  
  

• You want speed over volume.
  
  

• You’re using algorithmic strategies.
  
  

• You don’t want pending orders lying around.
  
  

This makes IOC a great fit for active traders and high-frequency trading environments.

Advantages of IOC Orders

Here are the top benefits:

• Fast execution: No waiting involved.
  
  

• Avoids pending orders: Keeps your books clean.
  
  

• Useful in rapid price changes: Acts quickly before prices shift.
  
  

• Part of many automated strategies: Often used in algo bots.
  
  

Disadvantages of IOC Orders

But they’re not perfect:

• Partial execution: You may not get the full quantity.
  
  

• No re-tries: If the match fails, you lose the chance.
  
  

• Not ideal for large volume orders in low liquidity stocks.
  
  

Always match the order type to your trading goal.

IOC Orders in Intraday and Day Trading

IOC orders are a go-to tool for intraday traders. Why?

• Markets move fast.
  
  

• Prices change in seconds.
  
  

• Traders want results immediately.
  
  

Using IOC can help you lock in fast trades or avoid missed opportunities when seconds count.

IOC Orders in Algo Trading

IOC plays a critical role in algorithmic trading. Bots and automated systems are programmed to make split-second decisions. They love IOC orders because:

• They can act without delay.
  
  

• They help avoid stale orders.
  
  

• They support volume-based, price-sensitive strategies.
  
  

That’s why top algo trading platforms in India rely heavily on IOC logic.

How to Place an IOC Order?

Placing an IOC order is simple. Most trading platforms (Quanttrix, Upstox, Angel One, etc.) follow this format:

1. Open your trading app or software.
   
   

2. Select the stock or instrument.
   
   

3. Choose Order Type: IOC.
   
   

4. Enter quantity and price.
   
   

5. Confirm.
   
   

Done! The system handles the rest.

Best Algo Trading Software in India

Here’s a look at some of the best algo trading software in India today:

• Quanttrix – Ideal for both beginners and pros. Highly customizable.
  
  

• Quanttrix Streak – User-friendly with drag-and-drop interface.
  
  

• AlgoTrader – Best for institutional and hedge fund users.
  
  

• Tradetron – Cloud-based and easy for non-coders.
  
  

• Upstox API – Good for developers and automation experts.
  
  

If you’re getting into automation, these tools can boost your speed and accuracy.

Popular Algo Trading Platforms in India

These platforms help deploy algorithmic strategies without heavy tech skills:

• Quanttrix Kite + Streak
  
  

• Angel One SmartAPI
  
  

• Upstox Algo Lab
  
  

• 5Paisa APIBridge
  
  

• Quanttrix Platform
  
  

Each offers easy integration, backtesting tools, and fast order execution—and yes, they all support IOC!

Benefits of Algorithmic Trading Software

Why is algorithmic trading software getting so popular?

• Speed: Executes trades faster than humans can blink.
  
  

• Accuracy: No emotions, just code.
  
  

• Backtesting: Test your strategies on historical data.
  
  

• Efficiency: Handles large data and multiple orders easily.
  
  

In short, you gain a superpower in the market.

IOC and Automated Trading: A Perfect Match

IOC orders and algorithmic trading go together like bat and ball.

• Algo systems need to act fast.
  
  

• IOC helps avoid queues and rejections.
  
  

• It ensures cleaner, quicker trades.
  
  

That’s why most algo engines prefer IOC as their default mode for rapid-fire orders.

Final Thoughts on Using IOC Smartly

IOC isn’t just another stock market term—it’s a tool of precision and speed. It helps you act fast, clean up unfilled orders, and align with modern trading strategies.

Whether you're a new trader exploring the basics or using the best algo trading software in India, knowing when and how to use IOC can make or break a trade.

FAQs

What is the main benefit of using IOC orders?
IOC orders help you execute trades immediately and avoid hanging or pending orders.

Can I use IOC orders for long-term investing?
Not ideal. IOC is best for short-term, fast-paced strategies like intraday or algo trading.

Are IOC orders supported on all trading platforms in India?
Most major platforms like Quanttrix, Upstox, Angel One, and Quanttrix support IOC orders.

Do IOC orders cost more in brokerage or charges?
No, IOC orders usually don’t have extra charges compared to regular market or limit orders.

How do algo trading platforms in India use IOC orders?
They use IOC to ensure trades are executed instantly by bots without leaving partial or pending trades behind.