- Solve real problems with our hands-on interface
- Progress from basic puts and calls to advanced strategies
Interactive Options Course
Lesson 16 of 16
Already an Interactive Brokers Client?
New to Interactive Brokers?
A Limit on Close or LOC orders are a type of limit order that aims to execute a trade at the close if the market price is at or better than the limit price. If the market price is worse than the limit price, then the order is not executed.
The order panel in IBKR Desktop can be populated by either clicking on a symbol in the Portfolio or Watchlist screens or typing in a symbol in the search bar. Once the symbol is selected the investor can click “Buy” or “Sell” to create an order window. In this example the investor chooses to create a “Buy” order and can select the quantity in shares. Note that Limit on Close orders do not support fractional shares. The investor chooses 100 shares. Directly below are three order types; Limit, Market, and Stop. The investor clicks on “Stop” and scrolls to “Limit on Close”, next they input the limit price for the order in the line below. They can select Day or Good ‘Till Cancelled, known as GTC. For more information on these terms please see the IBKR Traders’ Glossary.
When the investor is satisfied with the order inputs they can either click on “Preview” to see a breakdown of the order as well as its effect on margin, “Save” to save the order to be transmitted later, or “Transmit” to send the order. The investor chooses “Preview”, and the Order Preview window appears. Once satisfied they click “Transmit” to send the order.
Please note that the Nasdaq stops accepting LOC orders at 3:58 pm ET but cannot be cancelled or modified after 3:55 pm ET and NYSE stops accepting LOC orders at 3:50 pm ET. Please see each exchanges website for more details.
For specific platform feedback and suggestions, please submit it directly to our team using these instructions.
If you have an account-specific question or concern, please reach out to Client Services.
We encourage you to look through our FAQs before posting. Your question may already be covered!
The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Interactive Brokers, its affiliates, or its employees.
The order types available through Interactive Brokers LLC's trading platforms are designed to help you limit your loss and/or lock in a profit. Market conditions and other factors may affect execution. In general, orders guarantee a fill or guarantee a price, but not both. In extreme market conditions, an order may either be executed at a different price than anticipated or may not be filled in the marketplace.
Any stock, options or futures symbols displayed are for illustrative purposes only and are not intended to portray recommendations.
Thank you!
Confusing but I am getting it …finally 🙂
Hello Cynthia, we are happy to hear you enjoy Traders’ Academy! If you have any additional questions, please feel free to ask. We are here to help!
Hi, A couple questions please. At what time time does the LOC order is executed? is it during the last 5 minutes of regular trading hours? Can I setup a LOC to be executed after/before trading hours?
Hi Cisco, thank you for asking. An LOC order must be routed direct to the exchange (Amex, NYSE or SuperSOES). Order must be submitted no later than 15 minutes prior to the close of the market. All LOC orders must be received at NYSE by 3:40 pm unless entered to offset a published imbalance. NYSE rules also prohibit the cancellation or reduction in size of any limit-on close (LOC) order after 3:40 P.M. Eastern Time. Please review this resource for more information.
For more information on our Order Types, please review our webpage: https://spr.ly/IBKR_OrdersCampus
We hope this helps!
is a loc order more likely to fill than a regular limit order at the close?
Hello, thank you for reaching out. You can learn more about specific order types on our webpage: https://spr.ly/IBKR_OrdersCampus
Hello, thank you for reaching out. For more information on the Order Types, please review our webpage: https://spr.ly/IBKR_OrdersCampus