What is day and IOC in Zerodha
What is day and IOC in Zerodha?
Zerodha is a leading Indian discount broker that provides a platform for trading in stocks, commodities, currencies, and derivatives. Zerodha offers various tools and features to its customers to make their trading experience easy and efficient. Two such features are 'Day' and 'IOC' orders.
Day Order:
A day order is an order type in which the trader buys or sells securities that are valid only for a single trading day. This means that if the order is not executed on the same day it was placed, it will automatically get cancelled at the end of the trading day. Day orders can be placed for both buy and sell trades. For example, suppose a trader wants to buy shares of a particular company at a specific price. In that case, he can place a day order specifying the desired price, and the order will remain active only till the end of the trading day.
IOC order:
IOC stands for Immediate or Cancel. An IOC order is an order type in which the trader buys or sells securities immediately or cancels the order if it cannot be executed immediately. This means that if the order cannot be executed immediately, either partially or fully, it will be cancelled immediately. IOC orders are mostly used for trading in highly volatile stocks, where the price of the stock can change rapidly. For example, suppose a trader wants to buy shares of a particular company at a specific price. In that case, he can place an IOC order, and the order will either be executed immediately at the desired price, or it will be cancelled if the price does not match.
Difference Between Day and IOC
The key difference between the day and the IOC order is the validity of the order. While a day order is valid only for a single trading day, an IOC order is valid only for the moment it is placed. The execution of an IOC order is immediate or cancelled, whereas a day order can remain active till the end of the trading day.
Conclusion
Day and IOC orders are two types of orders available for traders to place orders in Zerodha. The day order is valid for a single trading day, while the IOC order is valid only for the moment it is placed. Traders should understand the difference between the two types of orders and choose the appropriate order type based on their trading strategy and market conditions.
0 comments