Good Til Canceled

What is a Good Til Canceled (GTC) Order?

A good ’til canceled (GTC) order is an order duration type used to buy or sell a security. The GTC order remains active until it is either executed or explicitly canceled by the trader/investor. It does not have an automatic expiration date like a day order. GTC orders continue working in the market across multiple trading sessions until filled or manually canceled.

Benefits of Using GTC Orders

The primary benefit of a GTC order is that it allows traders to stay in the market without having to re-enter their order each day, providing more flexibility. This is useful for investors looking to execute a trade over a longer timeframe. It also helps avoid the hassle of re-entering the same order repeatedly if it doesn’t fill immediately.

Risks and Drawbacks of GTC Orders

One risk is the potential for unwanted executions at unfavorable prices if the order remains open too long as market conditions change. GTC orders also generally have lower priority than other order types. Many brokers will automatically cancel unfilled GTC orders after a set time period, like 60 or 90 days, as well.

GTC Order Entry and Cancellation

To place a GTC order, the trader specifies “GTC” or “Good til Canceled” as the time in force when entering the order. Traders need to actively monitor open GTC orders and cancel them manually if they no longer want the trade to be worked. Failing to cancel can lead to executions at unwanted levels.

GTC Orders vs Other Order Types

Compared to day orders that automatically expire at the end of each session, GTC orders continue working until completed. They provide more convenience but less control. GTC orders differ from market and limit orders which execute immediately if possible rather than resting on the order book.

GTC Order Usage by Market/Asset

GTC orders can be used for various securities like stocks, options, futures and others traded on exchanges. Their availability may vary slightly by broker. For stocks, GTC sell orders cannot be placed for shares not already held in the account.

Alexander Voigt, CEO
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Alexander Voigt is the founder of DayTradingZ, was a regular contributor to Benzinga and has been featured and quoted on leading financial websites such as Investors.com, Capital.com, Business Insider and Forbes.