LOC
Limit On Close Order

LOC Order or Limit On Close Order allows the trader to buy or sell in the post market auction at a limit price.

After you create your 'Trading Action Plan', based on your own technical or fundamental research, next step you are going to take is, placing your order with your broker. Before you can start buying and selling stocks, you must know the different types of orders. You must be aware as to which order is appropriate and its implications.

What is a LOC or Limit On Close Order?

This is a conditional request made to the broker (or the system) to buy or sell a stock at the closing price but with in a limit price.

Most markets have single-price auctions at the beginning and the end of regular trading, where both selling and buying orders are matched for the single market closing price. This order allows the trader to buy or sell in the post market auction at what ever the market close price but with in a predetermined limit price.

When to use a LOC or Limit On Close Order?

This order is placed to ride the trend till the last moment of the trading when you are in a highly trending market.

This order placed when you expect that you are going to reach your target price at the end of the market.

The shares will be bought if the market close price is same or less than the specified limit price and a sell trade is executed if the market close price is same or higher than the specified limit price.

When not to use a LOC or Limit On Close Order?

Limit On Close Order will not assure you the trade. So do not use this order to square your intraday short positions. Instead close your trade during the trading hours before market close.

When you are short and could not close the trade by buying you will be penalized by buying the your stock in auction, where you may incur a huge loss.

Compare LOC Order or Limit On Close Order with other type of orders:

  • All or None Order
  • It is a conditional request made to the broker (or the system) to buy or sell a required number of shares at particular price, only if full quantity of shares are available.
  • GTC Order
  • It is a conditional request made to the broker (or the system) to keep the order in system until it gets executed or canceled.
  • GTD Order
  • It is a conditional request made to the broker (or the system) to keep the order in system until it gets executed or till a predetermined date.
  • IOC Order
  • Immediate or Cancel is a conditional request made to the broker (or the system) to execute the transactions immediately or to cancel it.
  • Limit Order
  • Limit Trading Order is a conditional request made to the broker (or the system) to buy or sell a stock at a particular price or at a better price.
  • Market Order
  • Order to buy or sell at market is a conditional request made to the broker (or the system) to execute the transactions with the immediate best available price.
  • Stop Loss Order
  • Order at stop is a conditional request made to the broker (or the system) to execute the transactions with the immediate best available price, once the price crosses a predetermined trigger price.
  • Stop Limit Order
  • Order at stop limit is a conditional request made to the broker (or the system) to execute the transactions with the immediate best available price, once the price crosses a predetermined trigger price but with in a predetermined limit price.
  • Minimum Fill Order
  • This is a conditional request made to the broker (or the system) to execute the transactions only when a minimum number of shares are available.
  • One Cancels Other Order
  • This is a conditional request made to the broker (or the system) to execute one of the two orders, which ever meets the required parameter first, and cancel the other.
  • Market on Close Order
  • This is a conditional request made to the broker (or the system) to buy or sell a stock at the closing price.
  • Market on Open Order
  • This is a conditional request made to the broker (or the system) to buy or sell a stock at what ever the market opening price.
  • Limit on Open Order
  • This is a conditional request made to the broker (or the system) to buy or sell a stock at what ever the market opening price but with in a predetermined limit price.
  • Market If Touched Order
  • This is a conditional request made to the broker (or the system) to buy or sell a stock at what ever the market price only after the stock trades at particular predetermined price.
  • Iceberg Order
  • This is a conditional request made to the broker (or the system) to buy or sell a large required quantity of stock, but in smaller predetermined quantity.
  • Fill or Kill Order
  • This is a conditional request made to the broker (or the system) to execute the transactions only if the full quantity of shares are available, or else to cancel the order.







Click here to go back from LOC Order to Types of Stock Trading Orders. 

Click here to go back to Stock Trading Infocentre Home page 














New! Comments

Have your say about what you just read! Leave me a comment in the box below.

About Us

Your Compliments are here

Stock Trading Infocentre Book Store

Tomorrow's market is not just unknown,
it is unknowable.

It is easy to become rich in Stock Market.
It is much more easier to go broke.

The stock market is forever evolving
it is Dynamic.
Because of its complexity,
a stock trader is Always a Student,
Never a Master.