what is IOC in options?
i see GFD,IOC in options validity trading what are they GFD : Probably is good for day
- zman492Lv 71 decade agoFavorite Answer
ioc = immediate or cancel. As much of the order as can be if filled immediately, the rest is canceled.
Compare this to
fok = fill or kill. the entire order must be filled immediately or the entire order is canceled.
If you saw the current ask for an option was $0.50, And there were 5 contracts available at that price. You put in a limit order to buy 20 contracts at $.0.50.
If you did not specify IOC or FOK you would buy the five contracts available and an order for the remaining 15 contracts would be entered into the order book to be filled late if someone else is later willing to sell some contracts at $0.50. The bid quote for the option would become $0.50. The ask quote would go up from $0.50 to the next lowest price at which someone had an outstanding sell order.
If you specified IOC you would buy 5 contracts and the rest of the order would be canceled. The "bid" quote would remain unchanged. The ask quote would go up from $0.50 to the next lowest price at which someone had an outstanding sell order.
If you specified FOK you would buy no contracts and the order would be canceled Both the bid quote and the ask quote would remain unchanged.
- 4 years ago
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This means learning how it works, learning how to read charts and learning how you can make accurate predictions. All these are not that difficult but it takes some time. If you treat it as gambling and just make random predictions then you will obviously not win.