Stock market trading orders can be classified as following based on time conditions. A stock market investor/trader can specify a type of order while submitting a trade.
Immediate or Cancel (IOC): In an IOC order, as the name suggests, a counter order with the matching price should be available immediately other wise the order will be cancelled. Quantity doesn’t need to be matched i.e. partial matches are allowed but the unmatched quantity will be cancelled. For example, if an order is placed for 10000 shares and if the order is matched only for 5000, then only 5000 shares are traded and the order for the other 5000 shares will be cancelled.
Good-till-date: In good-till-date order the orders stay open till a defined date. Orders are cancelled if they are not executed by that date.
Good-till-cancelled: As the name suggests this order is valid until they are cancelled by the customers, if not executed.
It should be noted that the acceptance of different types of orders varies from exchange to exchange and may depend upon the broker.
Sathish Emmadi
Sathish Emmadi is a co-founder & editor at Lastbull.com. He is presently working in IT for one of the world’s top mutual fund companies. Handled multiple projects in BFSI (Banking,Financial Services and Insurance) domain. An Engineering Graduate from NITW.
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