Immediate Or Cancel (IOC) Orders Explained for Australian Investors 2025

When milliseconds can mean the difference between profit and disappointment, Australian share traders are increasingly turning to advanced order types to stay ahead. Among them, the Immediate Or Cancel (IOC) order is emerging as a must-have tool for active investors and institutions trading on the ASX and global markets in 2025. But what exactly is an IOC order, and how does it fit into today’s fast-paced trading landscape?

What Is an Immediate Or Cancel (IOC) Order?

An Immediate Or Cancel (IOC) order is a type of share market order that instructs the broker or trading platform to buy or sell as much of a specified quantity as possible instantly—and to cancel any portion that can’t be executed right away. If the full order can’t be filled immediately at the desired price, the unfilled part is automatically cancelled, never lingering on the market.

This is in contrast to a Fill Or Kill (FOK) order, which must be executed in full immediately or not at all, and a limit order, which can sit on the order book until the price is met or it’s manually cancelled.

• IOC orders: Fill as much as possible now, cancel the rest.

• FOK orders: Fill the entire order now or cancel it all.

• Limit orders: Can remain open until filled or expired.

Why Are IOC Orders Popular in 2025?

With ASX trading volumes reaching new highs in 2025, driven by algorithmic trading and the rise of retail investors using powerful trading apps, IOC orders are gaining traction for several reasons:

• Speed and Precision: High-frequency traders and institutional investors use IOC orders to execute large trades without exposing the entire order to the market, minimising slippage and price impact.

• Risk Management: By avoiding partial fills that linger, IOC orders help prevent unwanted exposure, especially in volatile or illiquid stocks.

• Efficient Execution: Retail investors can use IOC orders during periods of market volatility (such as during earnings releases or macroeconomic news) to secure the best available price on a portion of their order, without the risk of chasing a rapidly moving market.

For example, if you want to buy 2,000 shares of a small-cap ASX stock at $1.10 but only 1,200 are available at that price, an IOC order ensures you get those 1,200 instantly and the rest is cancelled—no surprises, no leftovers.

2025 Policy Updates: What’s New for IOC Orders?

The ASX updated its order type rules in late 2024 to enhance market transparency and efficiency. These changes, now in full effect for 2025, include:

• Enhanced Order Book Visibility: IOC orders are now more clearly flagged in the market depth, helping traders gauge immediate liquidity more accurately.

• Minimum Quantity Rules: Some brokers have introduced minimum fill thresholds for IOC orders to prevent excessive market noise from micro-orders, especially in microcap stocks.

• Platform Innovations: Major Australian trading apps and online brokers now offer IOC as a default advanced order option, with user-friendly interfaces and real-time fill notifications.

These updates reflect a wider global trend, as exchanges in the US, Europe, and Asia-Pacific also refine their approach to immediate execution order types in response to the rise of algorithmic trading and regulatory scrutiny on market fairness.

When Should Australian Investors Use IOC Orders?

IOC orders are a flexible tool, but they shine brightest in certain scenarios:

• Trading Illiquid Shares: When there’s limited volume at your desired price, an IOC lets you grab what’s available without leaving a partial order exposed.

• Large Block Trades: Institutions often break big trades into multiple IOC orders to avoid moving the price against themselves.

• Volatile Market Events: During periods of high volatility—think RBA announcements or global shock events—an IOC order can secure instant execution at the best available price.

• End-of-Day Trading: Use IOC orders near market close to avoid unfilled orders rolling over to the next session, which can be risky in thinly traded stocks.

However, they’re not ideal if you want to ensure your entire order is filled or if you’re happy to wait for a specific price over a longer period.

IOC Orders: Smart, Not Just Fast

While IOC orders are often associated with high-frequency trading and market pros, they’re increasingly accessible and useful for everyday Australian investors in 2025. The key is to use them strategically: know your objectives, understand market conditions, and always check your broker’s IOC options and fees. With the right approach, IOC orders can help you seize opportunities and reduce risk in a market that never stands still.