NISM Certifications · NISM-Series-VIII: Equity Derivatives · Trading Mechanism
Under the NSE trading system for derivatives, what does a 'Market Order' with the 'Immediate or Cancel' (IOC) condition do?
An Immediate or Cancel order is executed immediately to whatever extent matching orders are available, and any unexecuted portion is cancelled automatically. It is not retained in the order book, which distinguishes it from Day and Good Till Cancelled orders.
- AIt is executed immediately to the extent possible and any unexecuted part is cancelledCorrect
- BIt remains in the book until the end of the day
- CIt is held until the contract expires
- DIt is executed only after the opening session ends
Explanation
IOC orders are matched immediately, in full or in part, and any balance is cancelled automatically. They are not kept in the order book, so they do not stay for the day or until expiry.
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