A:

GTEM stands for "good 'til extended market". This is a type of duration order that investors can place with their brokers, which determines how long the order will remain active. A GTEM buy or sell order remains open or exercisable for the entire day and is an active order in both the pre- and after-hour markets. This expands on the day order, which is only active during regular market hours and is canceled when these market hours are over.

GTEM effectively allows for the order to be exercised at any point when the security trades as long as the criteria for the order are met. This type of order will typically be accompanied with a pricing constraint on the order such as a stop or limit, because of the relative volatility of the extended market.

For example, a trader may place a GTEM stop-loss order on the stock of a company that is set to announce its earnings for the quarter after the close of regular market trading. If the earnings were disappointing, this may lead to a decline in the price of the shares, turning the GTEM stop loss order into a sell order in the after-hours market in which case the position will probably be sold. Typically, if the trader doesn't have a GTEM or other after-hours order, he or she would have to wait until the market opened the next day, which could result in getting a much lower price than what could be had in the after-hours market.

For related reading, check out The Basics Of Order Entry.

RELATED FAQS
  1. How do I place a limit order online?

    Learn how a limit order is placed, the types of stocks it is most useful for and the specifications placed with it to suit ... Read Answer >>
  2. What's the difference between a market order and a limit order?

    Buy and sell trades with market orders at the present stock price and execute limit orders if the stock price falls within ... Read Answer >>
  3. Why do limit orders cost more than market orders?

    Learn the difference between a market order and a limit order, and why a trader placing a limit order pays higher fees than ... Read Answer >>
  4. What is the difference between a stop and a market order?

    Learn about market orders and stop orders, how they are used and executed, and the main difference between stop orders and ... Read Answer >>
  5. Why are the bid and ask quotes usually so far away from each other in after-hours ...

    After-hours trading is defined as the exchange of securities outside of an exchange's specified regular trading hours (usually ... Read Answer >>
  6. How can my stock's price change after hours, and what effect does this have on investors? ...

    Most investors know that the major stock exchanges have standard trading hours - set periods of time each day when trading ... Read Answer >>
Related Articles
  1. Trading

    The Basics Of Trading A Stock

    Taking control of your portfolio means knowing what orders to use when buying or selling stocks.
  2. Investing

    Explaining Market Orders

    A market order is the most common order used to purchase a financial security.
  3. Trading

    Which Order To Use? Stop-Loss Or Stop-Limit Orders

    Stop-loss and stop-limit orders can provide different types of protection for investors seeking to lock in profits or limit losses. Investors need to know how each type of order works to know ...
  4. Trading

    How To Place Orders With A Forex Broker

    Learn how to set each type of stop and limit when trading currencies.
  5. Trading

    Understanding Order Execution

    Find out the various ways in which a broker can fill an order, which can affect costs.
  6. Investing

    Narrow Your Range With Stop-Limit Orders

    With stop-limit orders, buyers protect themselves from prices too high for their tastes.
  7. Investing

    Making The Trade: Understand Order Types

    Buying and selling stock can be a lot like buying or selling a car. Traders should use and understand tools such as market orders, limit orders, day orders, and good-'til-canceled orders to ensure ...
  8. Investing

    Understanding Buy Stop Orders

    A buy stop order is an order to buy a stock at a specific price above its current market price.
  9. Investing

    Understanding Immediate-or-Cancel Orders

    A trader places an immediate-or-cancel order to immediately execute a trade in full or in part. Any part of the order that remains unfulfilled is canceled.
RELATED TERMS
  1. Bracketed Buy Order

    A buy order that is accompanied by a sell limit order above the ...
  2. Immediate Or Cancel Order - IOC

    An order to buy or sell a security that if not immediately filled, ...
  3. Day Order

    An order to buy or sell a security that automatically expires ...
  4. Limit Order

    An order placed with a brokerage to buy or sell a set number ...
  5. Bracketed Sell Order

    A sell order on a short sale that is accompanied (or "bracketed") ...
  6. Order

    An investor's instructions to a broker or brokerage firm to purchase ...
Hot Definitions
  1. Davos World Economic Forum

    The annual meeting of the World Economic Forum hosted at Davos—a small ski town in Switzerland—in January each year is among ...
  2. Smart Home

    A convenient home setup where appliances and devices can be automatically controlled remotely from anywhere in the world ...
  3. Efficient Frontier

    A set of optimal portfolios that offers the highest expected return for a defined level of risk or the lowest risk for a ...
  4. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  5. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the ...
  6. Border Adjustment Tax

    A tax levied on goods based on where they are sold – exported goods are exempt from tax; those imported and sold in the ...
Trading Center