Good Till Cancel (GTC) Order
What is a GTC order?
GTC stands for 'good 'til cancelled', and does what it says - the order is active until it is cancelled or the trade is completed.
Investors often request this type of order as it can be set up well in advance and left alone, instead of having to be set up every day.
Where have you heard about GTC orders?
The New York Stock Exchange (NYSE) and NASDAQ stopped accepting GTC orders and GTC stop orders in February 2016, in order to raise awareness of the risk associated with this type of order in cases of high market volatility.
You can still place GTC and GTC stop orders with most brokers, but no longer directly with the NYSE and NASDAQ.
What you need to know about a GTC order...
Although the name suggests that the order runs indefinitely, brokers usually set a 30 to 90 day limit, this prevents the order from being forgotten about. If it hasn't been completed within this time, the order will either be cancelled or extended.
GTC orders go hand-in-hand with condition-related orders, so that the GTC order is only executed when your condition is met. For example, if you want to buy a financial instrument at a certain price, your order will only be fulfilled once the instrument reaches that price.