Order validity is the period for which a placed order is valid.
The types of order validity are:
As the name suggests Immediate-or-Cancel (IOC) order is an order that once placed will be executed only if the entered quantity is matched or else it is cancelled.
The entered quantity could be fully or partially available. If it is matched fully, it gets executed. If it is not matched fully, the entire order is cancelled. If it is matched partially, the unmatched part of the order is cancelled immediately. IOC orders are generally used when the user wants to fill as much quantity at the current market prices and avoid trades at different price points.
For example: If a user places an IOC order for a quantity of 100 and if it is not filled immediately, the entire quantity of 100 will be cancelled. But if a quantity of 40 is filled immediately, the remaining 60 will be cancelled. In the case of the F&O segment, a partial match will happen in multiples of stipulated lot size, while the remaining order will get cancelled.
Day order as the name suggests will have validity till the end of the trading day.
This order will be passive in the order book if not filled immediately and will continue to remain till the end of the trading day. A partial match is possible for day orders, in case of a partial match remaining quantity will remain passive in the order book until it is filled or till the end of the trading day.
For example: If a user places a day order for a quantity of 100 and if it is not filled immediately, the entire 100 quantity will be in the order book. This quantity of 100 will be cancelled at the end of the trading day if not filled. If a quantity of 40 is filled immediately, the remaining 60 will remain passive in the order book until filled or till the end of the trading day.