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Limit IOC order Meaning

"Immediate-or-Cancel." A type of limit order that must be executed immediately. Unlike a FOK order, partial fills are allowed.

Any portion of the order that cannot be filled instantly at the specified price is canceled. IOC orders are used to "test" the liquidity of the market.

If you want to buy 100 BTC but only 10 are available at your price, the IOC order will buy the 10 and cancel the remaining 90. This prevents you from leaving a "resting" order on the book that might be filled later at an unfavorable time.

It is a favorite tool of day traders and high-frequency algorithms who want to capture a specific "moment" in the market without the risk of their order sitting on the books and becoming a target for other traders to "trade against."

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