A good till canceled order, commonly referred to as a GTC order, is an open order used by traders to [buy] or [sell][financial instruments]. As the name “good till canceled” suggests, this type of order is valid until the order is either filled or is canceled by the trader who placed it.
GTC orders can be used for both entering as well as exiting a trade and are the most commonly used order type by traders that operate on a time-sensitive basis. The majority of trading platforms will enforce a time limit on how long GTC orders are permitted to be open. This limit on the GTC order is referred to as time-in-force. Most GTC orders expire between a 30 to 90-day period.
GTC orders are most useful to traders who are not able to dedicate themselves to trading in a full-time capacity as they can place the order with their broker in the knowledge that the order will be executed should their price be met without them having to carry out any further actions or needing to watch the markets 100% of the time.
The important distinction between a good till canceled order and a similar type of order, a [day order], is that a day order expires at the end of a trading day, whereas a GTC order will remain active until either being canceled by the trader or the maximum time period for the order expiring.
- Good till canceled orders, or GTC orders, are open orders used at a pre-determined price. This type of order expires after a set period of time if the order criteria are not met
- Expiration times for GTC orders are between 30 to 90 days
- GTC orders can be used to both enter as well as exit a trad
- GTC orders are a great method of trading for traders who cannot dedicate themselves to trading on a full-time basis