Good Till Canceled

A Good Till Canceled (GTC) order is an order to buy or sell a security that remains active until it's either executed or explicitly canceled by the investor. Unlike day orders that expire at the end of the trading session, GTC orders stay open for an extended period, typically 30 to 90 days depending on the broker's policies. GTC orders are particularly useful when you want to buy or sell at a specific price but don't want to monitor the market constantly or re-enter orders daily. If you believe a stock is worth buying at $45 but it's currently trading at $50, you can place a GTC limit order to buy at $45. If the stock dips to that level over the coming weeks, your order executes automatically. The advantages of GTC orders include convenience and discipline. You can set target prices based on analysis done during calm periods, then let the order work without emotional interference from daily market movements. This is helpful for investors who can't watch markets regularly or who want to stick to predetermined plans. However, GTC orders require attention. Market conditions change, and an order that made sense when placed might no longer be appropriate weeks later. Investors should periodically review their outstanding GTC orders to ensure they still align with their current views and strategies. Some investors set calendar reminders to review and refresh their GTC orders. Brokers typically limit how long GTC orders remain active - usually 30, 60, or 90 days - after which they're automatically canceled. Understanding your broker's specific policies is important so you know when to re-enter orders if necessary. Most trading platforms make it easy to view, modify, and cancel GTC orders. Managing these orders as part of your regular portfolio review ensures your outstanding orders remain aligned with your investment goals.