IOC

Execution with IOC

The Immediate-Or-Cancel (IOC) strategy is designed for traders who need fast execution with minimal market exposure. The engine attempts to fill all or part of an order immediately, and any unfilled portion is automatically canceled. This strategy helps traders capture available liquidity without leaving orders open in the market.

How It Works

• The engine submits the order for immediate execution.

• Any unfilled portion is instantly canceled.

• Orders can be placed as market or limit orders.

• If multiple accounts are selected, the Smart Order Router (SOR) directs the order to the venue offering the best price and liquidity.

When to Use This Strategy

• Urgent Execution – Best for trades that need to be filled quickly.

• Managing Large Orders – Helps capture liquidity without affecting market prices.

• Volatile Markets – Reduces exposure to fast-moving market conditions.

Potential Drawbacks

• Partial Fills – Only part of the order may execute, leaving the rest unfilled.

• Missed Opportunities – Since unfilled portions are canceled immediately, traders might miss favorable price movements.

This strategy is ideal for traders who prioritize speed and liquidity capture while minimizing exposure to open order risks.