Question

What does IOC stand for in the context of stop loss orders?

Hint:

IOC = \textbf{Immediate or Cancel} — useful for fast execution in volatile market situations.

Answer 1

In trading, especially on platforms like NEAT, IOC stands for Immediate or Cancel. It is one of the order validity instructions used while placing an order, including stop loss orders. A stop loss order is used to limit potential losses by triggering a market or limit order once a specified price (the trigger price) is reached. When combined with an IOC instruction, it means:

The order is executed immediately (fully or partially) as soon as the stop loss is triggered.
Any portion of the order that is not immediately executed is automatically cancelled.
This is particularly useful in volatile markets where traders want to avoid leaving pending orders that might execute later at unfavorable prices.
Example: If a trader places a sell stop loss order with IOC and the trigger is hit, the system tries to execute the sell order instantly. If there is no matching buy order at that moment, it is cancelled.