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Good-Til-Cancelled Order

Good-Til-Cancelled (GTC) order is a type of order investors place to purchase or sell a stock and remains in effect until it is completed or cancelled. 

However, this does not mean that GTC orders can last forever as brokerage firms generally set the time limit for these orders to 30 or 90 days. The opposite of a GTC order is an immediate or cancel (IOC) order.

GTC orders are often compared to day orders, which expire if not filled by the end of the regular trading session. GTC orders are particularly preferred by investors who are not constantly monitoring the market as they allow them to make trades at specific price levels and hold the positions for a number of weeks. 

Furthermore, investors sometimes establish GTC orders as stop orders, enabling them to place sell orders below the current market price and buy orders above the market price. 

But bear in mind that some major stock exchanges, such as the New York Stock Exchange and NASDAQ, banned GTC orders because they believe these orders pose a risk to investors as there is a chance that an order can be filled at an unfavourable moment due to increased market volatility.

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Author: Mircea Vasiu Updated: July 21, 2022