Good Till Cancelled (GTC)

Good Till Canceled (GTC) is an order type used in financial markets that remains active until it is executed or manually canceled by the investor.

When placing a GTC order, investors specify the price at which they want to buy or sell a particular security, such as a stock or an option. The order remains open and active until it is filled, regardless of the duration, unless the investor cancels it.

GTC orders are commonly used by investors who want to set specific price levels for their trades and do not want to constantly monitor the market. This order type provides convenience and flexibility as it allows investors to set their desired price and let the order work in the background until it is executed or canceled.

One of the key advantages 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 Till 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.