Good ’til cancelled order

A Good ‘Til Canceled (GTC) order is a type of order placed by an investor in the financial markets. It instructs the broker or exchange to keep the order active until it is either executed or canceled by the investor.

The GTC order remains in effect until the investor manually cancels it, or until it is executed by the market. Unlike some other order types that have a specific time limit, a GTC order can remain open for an extended period, even for weeks, months, or longer.

GTC orders are commonly used by investors who want to buy or sell a security at a specific price but may not be able to monitor the market continuously. By placing a GTC order, investors can set their desired price level and let the order remain in the market until it is filled or canceled.

One advantage of using GTC orders is that they provide convenience and flexibility. Investors do not need to constantly monitor the market or manually place new orders every day. They can set their desired price levels and let the order work for them in the background.

However, it is important to note that GTC orders may carry certain risks. Market conditions can change rapidly, and the price may not reach the desired level before the order expires. Additionally, if there are any changes in the investor’s trading strategy or market outlook, they need to manually cancel the GTC order to avoid unintended executions.

It is also worth mentioning that some brokers or exchanges may have specific rules regarding GTC orders, such as maximum duration or limitations on certain types of securities. Investors should review the terms and conditions provided by their broker or exchange to understand the specific details and any potential fees associated with GTC orders.

Overall, Good ‘Til Canceled (GTC) orders offer convenience and flexibility for investors who want to set specific price levels for buying or selling securities without the need for continuous monitoring. However, it is important to regularly review and manage GTC orders to ensure they align with the investor’s trading strategy and market conditions.