Immediate-or-Cancel (IOC)
An Immediate-or-Cancel order attempts to fill as much as possible immediately and cancels any unfilled remainder.
✦ Key Insight
Large or thin-market orders may fill only partially, so remaining exposure needs to be managed.
✕ Common Misconceptions
IOC can permit partial fills, so do not confuse it with Fill-or-Kill.
Detailed Explanation
In Practice
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Liquidity
Liquidity describes how easily an asset can be bought or sold in meaningful size without causing a large change in price.
Order book
An order book is a list of open buy and sell orders arranged by price on a trading venue.
Slippage
Slippage is the difference between an expected trade price and the actual execution price.
Limit order
A limit order instructs a trading venue to buy or sell only at a specified price or better.
Market Depth
Market depth describes the quantity of buy and sell orders available at different prices in an order book.