Definition
A Good-Til-Canceled (GTC) order remains active until the investor cancels it or it gets filled. Unlike day orders that expire at the end of the trading day, GTC orders persist across multiple trading sessions. Most brokers set a maximum duration, typically 30-90 days, after which the order automatically expires. GTC orders are useful for patient investors who want to buy at a specific price without monitoring the market daily or for setting automatic exit points.
Example
You place a GTC limit order to buy Amazon at $140. The current price is $155. Your order stays open for up to 90 days, waiting for the price to drop to $140.
FAQ
What is Good-Til-Canceled (GTC)?
An order that remains active until executed, canceled, or a broker-specified time limit.
Why is Good-Til-Canceled (GTC) important?
Good-Til-Canceled (GTC) helps investors evaluate trading mechanics and make more informed decisions.