What is the Full Form of LOC in the Share Market?

The LOC Full Form in the Share Market is Limit on Close order. A LOC order is a limit order that is designated to be executed when the market closes. Limit orders can control the price that is paid for security or the price at which the security is sold. These orders are good only when the market closes and doesn’t last for the entire trading day.

Features of limit on close orders:

LOC orders are conditional orders that are available for the investors. It is a limit order, and its execution is based on the closing price of the market. Limit orders offer investors the opportunity to set the price for buying and selling the securities. A limit order can either buy or sell shares. A limit buy order means that the order will be executed at the limit price or below that.

Advantages of LOC orders:

Limits on close orders are more beneficial than the market order, as they allow the investor to control the price they pay for purchasing a security and the profit they receive from selling the security. A limit order does not require intraday monitoring, as the order is executed automatically at the close of the trading day. Traders are also able to reduce the risk of price fluctuations that can occur during the trading day.