Loading the player...

What is 'Good 'Til Canceled - GTC'

A good 'til canceled (GTC) order can be placed by an investor to buy or sell a security at a specified price that remains active until it is either rescinded by the investor or the trade is executed. GTC orders offer an alternative to placing a sequence of day orders, which expire at the end of each trading day. Rather than leave orders open ended, which poses the risk of being forgotten by investors until an eventual execution, GTC orders are commonly set to expire of 30 to 90 days after the trades are entered.

BREAKING DOWN 'Good 'Til Canceled - GTC'

GTC orders provide investors with the convenience of placing trades at specified price points, also referred to as limit orders, which remain in force until they reach an expiration date, are executed or are canceled. These orders can be entered to buy or sell stock, or as stop orders. Limit prices and share amounts can also be changed prior to the execution of the trade.

GTC Buy Orders

An investor seeking to buy shares at a price lower than the trading level at the time the order is placed can enter a GTC buy order. For example, with shares of XYZ Corp. trading at $25, an investor could place an order at $22, as long as the order is for at least 100 shares. If share prices decline to that level, the trade is executed at $22 or lower. Generally speaking, GTC orders are filled at their limit price. One exception is a gap down, in which the stock closes above the limit price but opens below it. In the example above, the limit order would be filled at or near the opening price of the stock after the gap, which could be substantially lower than the limit price.

GTC Sell Orders

Investors can place GTC sell orders above the market price at the time the order is placed. For example, with shares trading at $25, an investor can place an order to sell at $28. If the share price increases to that level, an active sell order would execute at $28 or higher. Like GTC buy orders, sell orders are also executed at prices favoring investors under certain circumstances. For example, a gap opening above $28 would be filled at or near the opening price.

The NYSE Stops GTC Orders

In February 2016, the NYSE and NASDAQ stopped accepting GTC orders, as well as GTC stop orders. Stop orders are usually placed to limit losses with automatic executions when trades are executed at a specified level. For example, with shares trading at $25, an investor could place a stop order at $20, which would be executed when a prior trade is executed at $20. At the execution of a trade at $20, the GTC stop order is converted to a market order which may be sold at, above or below $20. Most brokerages still offer GTC and stop orders, but they cannot be placed directly with the NYSE or NASDAQ.

  1. Firm Order

    A firm order may be referred to as an order for a trade from ...
  2. Open Order

    An open order is an order to buy or sell a security that remains ...
  3. Stop Order

    A stop order is an order to buy or sell a security when its price ...
  4. Bracketed Buy Order

    Bracketed buy order refers to a buy order that has a sell limit ...
  5. Time In Force

    Time in force is a special instruction used when placing a trade ...
  6. Fill

    A fill is the action of completing or satisfying an order for ...
Related Articles
  1. Investing

    Narrow Your Range With Stop-Limit Orders

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

    Understanding order execution

    Find out the various ways in which a broker can fill an order, which can affect costs.
  1. What is the difference between a buy limit and a sell stop order?

    Understand the differences between the two order types, a buy limit order and a sell stop order, and the purposes each one ... Read Answer >>
  2. Why can't I enter two sell orders on the same stock?

    The limitation on sell orders protects investors. Learn 3 reasons why you can't enter multiple sell orders and the downsides ... Read Answer >>
  3. How can I prevent my limit order from not getting filled if the stock's price gaps ...

    You can minimize the chances of this situation happening if you understand two types of orders: the buy-stop order and the ... Read Answer >>
  4. How long does it take a broker to confirm a trade after it is placed?

    Learn about placing trades with a broker and the amount of time required to received confirmation of different types of orders. Read Answer >>
  5. What happens to a stop order after a stock splits?

    A stop order (or stop-loss order) is executed when a security reaches a pre-determined price as a market order. Learn what ... Read Answer >>
Hot Definitions
  1. Economies of Scale

    Economies of scale refer to reduced costs per unit that arise from increased total output of a product. For example, a larger ...
  2. Quick Ratio

    The quick ratio measures a company’s ability to meet its short-term obligations with its most liquid assets.
  3. Leverage

    Leverage results from using borrowed capital as a source of funding when investing to expand the firm's asset base and generate ...
  4. Financial Risk

    Financial risk is the possibility that shareholders will lose money when investing in a company if its cash flow fails to ...
  5. Enterprise Value (EV)

    Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market ...
  6. Relative Strength Index - RSI

    Relative Strength Indicator (RSI) is a technical momentum indicator that compares the magnitude of recent gains to recent ...
Trading Center