What Is a Good Till Canceled (GTC) Order?
A Good Till Canceled (GTC) order is an instruction to buy or sell a security that remains open until it is either executed at your specified price or canceled manually. Unlike day orders, which expire at market close if not filled, GTC orders provide flexibility by remaining active for an extended period — typically 30 to 90 days depending on your brokerage.
How GTC Orders Work
When you place a GTC order, you specify:
- Order type: Buy or sell
- Price: The limit price you are willing to accept
- Quantity: Number of shares/contracts
The order stays in your broker’s system until:
- The market reaches your price (order executes), or
- You cancel it, or
- It expires after the broker’s maximum time limit.
Benefits of Using GTC Orders
- Convenience: No need to monitor prices daily.
- Price Discipline: Ensures you don’t chase stocks impulsively.
- Better Execution: Can capture favorable prices without being glued to the screen.
Risks and Drawbacks
- Unexpected Fills: Price gaps can trigger your order unexpectedly.
- Volatility Exposure: A sudden dip could fill a buy order right before prices fall further.
- Broker-Specific Rules: Some brokers adjust or purge GTC orders during corporate actions or system resets.
GTC Orders vs. Other Order Types
| Order Type | Expiration | Key Advantage |
|---|---|---|
| GTC | Stays open until filled or canceled (30–90 days typical) | Ideal for patient traders |
| Day Order | Expires at market close | Good for short-term trades |
| IOC | Immediate or cancel | Useful for partial fills |
| FOK | Must fill completely or cancel | Ensures all-or-nothing execution |
Best Practices for GTC Orders
- Review Regularly: Check weekly to confirm they still match your strategy.
- Pair with Stop Orders: Use stop-loss orders to control downside risk.
- Avoid During Earnings or Major News: Prevent accidental fills in volatile swings.
Example of a GTC Order
Suppose XYZ stock trades at $100. You want to buy at $95.
You place a GTC buy limit order at $95.
- If the stock dips to $95 within 60 days, your order fills automatically.
- If it never reaches $95, the order stays open until you cancel it or the time limit expires.
FAQs About GTC Orders
How long do GTC orders last?
Most brokers set a default expiration between 30 and 90 days.
Can I modify or cancel a GTC order?
Yes, you can adjust or cancel it anytime before it executes.
Are GTC orders safe?
They are safe when monitored regularly, but unreviewed orders can execute at unfavorable times.
Bottom Line
A Good Till Canceled (GTC) order is a powerful tool for disciplined traders who want to automate buy or sell decisions at target prices. Used wisely, it saves time and prevents emotional decision-making — but review your open orders often to avoid surprises during volatile markets.
