GTC
Good Till Cancellation

GTC or Good Till Cancellation is an attribute attached to a buy or sell order.

After you create your 'Trading Action Plan', based on your own technical or fundamental research, next step you are going to take is, placing your order with your broker. Before you can start buying and selling stocks, you must know the different types of orders. You must be aware as to which order is appropriate and its implications.

What is GTC or Good Till Cancellation Order?

It is a conditional request made to the broker (or the system) to keep the order in system until it gets executed or canceled.

Normally the order gets canceled at the end of the day, if it is not executed. With this attribute attached to the order, the order remains in the system indefinitely, until it is canceled or executed.


When to use GTC Order?

Big investors who want to buy or sell large number of shares, place a buy or sell order at a particular price. There order may take several days to fill. Every time the price is reached, the order gets filled partially and the order for unfilled quantity remains in the system till it is fully filled or till the order is canceled.

This avoids repeating the same order every day, until full quantity is bought or sold. This order is good even for the small investor.

You can use this attribute to place Stop Loss Orders. If the market crashes in your absence, your position will be squared off at your pre determined price, exiting the trade with minimum loss.

It is also used to place Target orders to exit the trade. Whenever the target price is reached the position will be squared off at your pre determined price, exiting the trade with profit.

GTC orders remain in the system for 30 days. But some brokers allow it to remain up to 90 days.

If a date parameter is given to cancel the unfilled order, then such orders are called as GTD or Good Till Date, which remains in the system till that date, if not canceled earlier.

Compare GTC Order with other type of orders:

  • All or None Order
  • It is a conditional request made to the broker (or the system) to buy or sell a required number of shares at particular price, only if full quantity of shares are available.
  • GTD Order
  • It is a conditional request made to the broker (or the system) to keep the order in system until it gets executed or till a predetermined date.
  • IOC Order
  • Immediate or Cancel is a conditional request made to the broker (or the system) to execute the transactions immediately or to cancel it.
  • Limit Order
  • Limit Trading Order is a conditional request made to the broker (or the system) to buy or sell a stock at a particular price or at a better price.
  • Market Order
  • Order to buy or sell at market is a conditional request made to the broker (or the system) to execute the transactions with the immediate best available price.
  • Stop Loss Order
  • Order at stop is a conditional request made to the broker (or the system) to execute the transactions with the immediate best available price, once the price crosses a predetermined trigger price.
  • Stop Limit Order
  • Order at stop limit is a conditional request made to the broker (or the system) to execute the transactions with the immediate best available price, once the price crosses a predetermined trigger price but with in a predetermined limit price.
  • Minimum Fill Order
  • This is a conditional request made to the broker (or the system) to execute the transactions only when a minimum number of shares are available.
  • One Cancels Other Order
  • This is a conditional request made to the broker (or the system) to execute one of the two orders, which ever meets the required parameter first, and cancel the other.
  • Market on Close Order
  • This is a conditional request made to the broker (or the system) to buy or sell a stock at the closing price.
  • Limit on Close Order
  • This is a conditional request made to the broker (or the system) to buy or sell a stock at the closing price but with in a limit price.
  • Market on Open Order
  • This is a conditional request made to the broker (or the system) to buy or sell a stock at what ever the market opening price.
  • Limit on Open Order
  • This is a conditional request made to the broker (or the system) to buy or sell a stock at what ever the market opening price but with in a predetermined limit price.
  • Market If Touched Order
  • This is a conditional request made to the broker (or the system) to buy or sell a stock at what ever the market price only after the stock trades at particular predetermined price.
  • Iceberg Order
  • This is a conditional request made to the broker (or the system) to buy or sell a large required quantity of stock, but in smaller predetermined quantity.
  • Fill or Kill Order
  • This is a conditional request made to the broker (or the system) to execute the transactions only if the full quantity of shares are available, or else to cancel the order.




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