These acronyms represent different order types used when trading Contracts for Difference (CFDs). An IOC, or Immediate or Cancel order, dictates that all or part of the order must be executed immediately, and any portion not filled is cancelled. A GTC, or Good ‘Til Cancelled order, remains active until it is either filled or the trader cancels it. A Day CFD specifies that the contract expires at the end of the current trading day.
Understanding these order types is critical for effective risk management and strategic trading. An Immediate or Cancel order can be beneficial when speed is paramount, even if it means only partially filling the desired position. Conversely, a Good ‘Til Cancelled order offers convenience by keeping the order active over a prolonged period, automatically executing when the target price is reached. Day CFDs are inherently short-term, appealing to traders seeking quick profits from intraday price fluctuations and avoiding overnight holding costs. The judicious use of each type empowers traders to control their exposure and optimize their trading strategy.