Limit-On-Close (LOC) Order

Limit-On-Close (LOC) is an order to be executed as a Limit Order (i.e. to buy/sell at the Limit Price or better) as close as possible to the market close.
Hence, Limit-On-Close order will be executed at or near the closing price, only if the price is at or better than the Limit Price. Otherwise, the order will be cancelled.

Similar to Market-On-Close (MOC) order, for this order, the broker normally set a time deadline for LOC order submission for that day, which is well before the closing of the trading day. After this submission time deadline, the broker will not accept any more LOC order, and the traders also cannot cancel the submitted LOC order for that day.

As with limit order, while Limit-On-Close order can be filled at the Limit Price or better, it does not guarantee a fill.

LOC order is useful when traders find that the closing price of a certain security has historically proven to be the best price of the day (i.e. the closing price is the highest for sell order, or lowest for buy order), but still want to have control over the price at which the order will be filled to ensure that the execution price is still within their comfortable / acceptable limit.

For the list of other types of order, go to: Types of Orders in Trading.

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