Introduction To Order Types: Duration
AAA
  1. Introduction To Order Types: Introduction
  2. Introduction To Order Types: Long And Short Trades
  3. Introduction To Order Types: Market Orders
  4. Introduction To Order Types: Limit Orders
  5. Introduction To Order Types: Stop Orders
  6. Introduction To Order Types: Conditional Orders
  7. Introduction To Order Types: Duration

Introduction To Order Types: Duration

In addition to market, limit, stop and conditional orders, traders can also specify for how long they wish the order to be in effect; that is, how long the order will remain in the market until it is canceled (assuming it is not filled). Order entry interfaces typically provide several options; Figure 9 shows the options that are available on TradeStation (other trading platforms may have slightly different options).


Figure 9 - The various types of orders traders can use to specify how long an order will remain active in the market. Image created with TradeStation.


Day
A day order automatically expires at the end of the regular trading session if it has not been executed. Many platforms use this as the default order duration. A "Day +" duration is valid until the end of the extended trading session.

Good-Til-Canceled - GTC
A good-til-canceled order is active until the trade is executed or the trader cancels the order. Brokers typically cancel GTC orders automatically if they have not been filled in 30 to 90 days.

Good-Til-Date - GTD
A GTD order remains active until a user-specified date, unless it has been filled or canceled.

Immediate-Or-Cancel - IOC
An IOC requires all or part of the order to be executed immediately; otherwise, the order (or any unfilled parts of the order) will be canceled.

Fill-Or-Kill - FOK
An FOK order must be filled immediately in its entirety or it will be canceled. Partial fills are not accepted with this type of order duration.

All-Or-None - AON
Similar to an FOK, an AON order will be canceled if the order cannot be filled in its entirety by the end of the trading session. Partial fills are not accepted with this type of order duration.

At-the-Opening
An at-the-opening order will be executed upon the opening of the trading session. If the order cannot be executed at the open, it will be canceled.

At-the-Close
At the close (or "on close") orders are executed at the close of the trading session, at or as close to the closing price as possible.

Minute
Minute orders expire after the specified number of minutes has elapsed. Common intervals include one-, three- and five-minute order durations.

Conclusion
Knowing how to trade can be important as knowing when to trade. Understanding the different order types and how to apply them can help traders streamline the order entry process and avoid costly slippage and unnecessary losses.

Advanced order types, such as OCO and OSO orders, act as a basic form of trade automation, since many of the orders, once defined, are handled by the trading platform. Trade automation, whether at a basic level or as a fully automated trading system, can help traders control emotions, avoid costly pilot error mistakes and protect open trades with profit targets, stops and trailing stops.


  1. Introduction To Order Types: Introduction
  2. Introduction To Order Types: Long And Short Trades
  3. Introduction To Order Types: Market Orders
  4. Introduction To Order Types: Limit Orders
  5. Introduction To Order Types: Stop Orders
  6. Introduction To Order Types: Conditional Orders
  7. Introduction To Order Types: Duration
RELATED TERMS
  1. At The Lowest Possible Price

    A type of security trading designation that instructs a brokerage ...
  2. At The Highest Possible Price

    A type of security trading designation that instructs a brokerage ...
  3. Fintech

    Fintech is a portmanteau of financial technology that describes ...
  4. Indicator

    Indicators are statistics used to measure current conditions ...
  5. Intraday Momentum Index (IMI)

    A technical indicator that combines aspects of candlestick analysis ...
  6. Bidding Up - Securities

    The act of increasing the price an investor is willing to pay ...
RELATED FAQS
  1. Tame Panic Selling with the Exhausted Selling Model

    The exhausted selling model is a pricing strategy used to identify and trade based off of the price floor of a security. ... Read Full Answer >>
  2. Point and Figure Charting Using Count Analysis

    Count analysis is a means of interpreting point and figure charts to measure vertical price movements. Technical analysts ... Read Full Answer >>
  3. What is a stock split? Why do stocks split?

    All publicly-traded companies have a set number of shares that are outstanding on the stock market. A stock split is a decision ... Read Full Answer >>
  4. What assumptions are made when conducting a t-test?

    The common assumptions made when doing a t-test include those regarding the scale of measurement, random sampling, normality ... Read Full Answer >>
  5. Is there a difference between financial spread betting and arbitrage?

    Financial spread betting is a type of speculation that involves a highly leveraged derivative product, whereas arbitrage ... Read Full Answer >>
  6. How do I place an order to buy or sell shares?

    It is easy to get started buying and selling stocks, especially with the advancements in online trading since the turn of ... Read Full Answer >>

You May Also Like

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!