Good 'Til Canceled - GTC

AAA

DEFINITION of 'Good 'Til Canceled - GTC'

An order to buy or sell a security at a set price that is active until the investor decides to cancel it or the trade is executed. If an order does not have a good-'til-canceled instruction then the order will expire at the end of the trading day the order was placed.

INVESTOPEDIA EXPLAINS 'Good 'Til Canceled - GTC'

In most cases, GTC orders are canceled by brokerage firms after 30-90 days. This type of order is traditionally placed at price points away from the price of the stock at the time the order is placed. For example if a stock you hold is currently $40 but you believe it will go to $50 at which point you will sell then, you can use a GTC order. Once the GTC order to sell is placed, if the price of the stock reaches $50 at any point over the next few months your shares will be sold.

RELATED TERMS
  1. Limit Order

    An order placed with a brokerage to buy or sell a set number ...
  2. End Of Day Order

    A buy or sell order that specifies a price for the security, ...
  3. Day Order

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

    An order to buy or sell a security when its price surpasses a ...
  5. Market Order

    An order that an investor makes through a broker or brokerage ...
  6. Good This Week - GTW

    A market order that is only valid in the week of its placement. ...
RELATED FAQS
  1. Should I enter a limit order to buy a position with a bid and ask that are far apart?

    You face the risk of losing the spread in a security with a bid and ask that are far apart when you enter a market order. ... Read Full Answer >>
  2. When should I use a trailing stop order?

    Trailing stop orders are used to limit losses and protect profits on a stock position. You should use trailing stop orders ... Read Full Answer >>
  3. How can I use a stop order to limit my losses on a long stock position?

    A stop order is a useful order type when you are trying to limit losses on your long stock position. When you are long a ... Read Full Answer >>
  4. What is the difference between a stop and a market order?

    A stop order and a market order are different order types that dictate how to enter and execute trades. Traders and investors ... Read Full Answer >>
  5. How can I use a buy limit order to buy a stock?

    An investor uses a buy limit order to buy a stock at a specific price or better price. Unlike a market order that takes the ... Read Full Answer >>
  6. What is the difference between a buy limit and a stop order?

    A buy limit order is used when an investor wants to open a long position in a stock at a certain price, while a stop order ... Read Full Answer >>
Related Articles
  1. Trading Strategies

    Patience Is A Trader's Virtue

    Waiting may be the biggest key to reeling in that trophy investment.
  2. Active Trading Fundamentals

    The Basics Of Trading A Stock

    Taking control of your portfolio means knowing what orders to use when buying or selling stocks.
  3. Trading Strategies

    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 ...
  4. Investing Basics

    Narrow Your Range With Stop-Limit Orders

    With stop-limit orders, buyers protect themselves from prices too high for their tastes.
  5. Trading Strategies

    How to Use Trailing Stops

    A trailing stop is an order to buy or sell a security if it moves in an unfavorable direction.
  6. Active Trading

    Pinpoint Winning Trade Entries With Filters And Triggers

    These tools will help you enter at high-probability points and ensure you trade within your set strategy.
  7. Active Trading Fundamentals

    Trailing-Stop Techniques

    The important decision to exit a position must be based on more than emotion if you want to be a disciplined trader.
  8. Investing

    Stop Limit Orders

    A stop limit is an order to sell or buy a stock once it reaches a certain level, but only if the shareholder can obtain a specified price.
  9. Investing Basics

    Understanding The Basics of A Stop-Limit Order

    There are many techniques used by investors and traders to restrict losses or lock in gains. The stop-limit order is one such technique.
  10. Investing Basics

    Stop Loss Order Strategy

    A stop loss order is an order placed with a broker to sell a stock immediately if it drops to a certain price. It's a common way for investors to protect themselves from the possibility of a ...

You May Also Like

Hot Definitions
  1. Coupon

    The interest rate stated on a bond when it's issued. The coupon is typically paid semiannually. This is also referred to ...
  2. Redemption

    The return of an investor's principal in a fixed income security, such as a preferred stock or bond; or the sale of units ...
  3. Standard Error

    The standard deviation of the sampling distribution of a statistic. Standard error is a statistical term that measures the ...
  4. Capital Stock

    The common and preferred stock a company is authorized to issue, according to their corporate charter. Capital stock represents ...
  5. Unearned Revenue

    When an individual or company receives money for a service or product that has yet to be fulfilled. Unearned revenue can ...
Trading Center