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Definition of the Week: Good Til Cancelled
Investment Knowledge from stockbrokers.com
Good Til Cancelled Order
A Good-Til-Cancelled order, also known as a GTC order, is an order to buy or sell a security at a specified price. This type of order is active until the trader chooses to cancel it. If a buy or sell order does not have the “good-til-cancelled” instruction, then the order will generally expire at the close of the trading day.
stockbrokers.com Explains Good Til Cancelled Orders
Investors often use a a Good Til Cancelled order when a stock is a small amount away from a price at which they wish make a purchase or sale. For example, if you want to sell a stock you currently own if it hits $40 a share, it might be a good idea to place a “Good Til Cancelled” order when it is trading near $35 a share. This allows investors to have an order executed even if they can’t be watching the market right as the stock price hits their desired sale or purchase level. It is important to note that investors should check with their individual brokerage firm to see how long they allow a GTC order to be open. Most brokerages will close the order somewhere between 30 days and 90 days from the time it was entered in the system.
One Response
[...] Good Til Cancelled (GTC) – Good Til Cancelled has quickly become one of the most popular order types. A GTC order is just what it sounds like it is, good until it is cancelled. The only caveat here is that most brokers will cancel the order somewhere between 30-90 days, so you’ll need to make sure you know the rules at your online brokerage. Other popular trade order expiration types that are similar to this one are the Good This Week (GTW) and Good This Month (GTM) order types. [...]
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