A Good 'Til Canceled (GTC) Order

A Good 'Til Canceled (GTC) order is a powerful tool for long-term traders, allowing them to set price targets and wait for market execution.



3/3/20243 min read


What is GTC Orders?

A Good 'Til Canceled (GTC) order is a type of order that remains active until the trader cancels it or the order is executed, regardless of the trading session's end. Unlike other order types that expire at the end of the trading day, GTC orders remain in effect until specified otherwise by the trader.

GTC orders are particularly useful for setting long-term trading strategies where the trader does not want to reset orders each day. They allow traders to set their desired buy or sell price and wait for the market to reach that level, even if it takes days, weeks, or even months.

The Benefits of GTC Orders

There are several benefits to using GTC orders in your trading strategy:

1. Convenience and Efficiency

GTC orders eliminate the need for traders to constantly monitor the market and manually place orders each day. Once a GTC order is set, it remains in effect until the desired price is reached or the trader decides to cancel it. This frees up time and mental energy for traders to focus on other aspects of their trading strategy.

2. Long-Term Planning

GTC orders are commonly used in situations where a trader is waiting for a specific price target to be reached over time. For example, if a trader believes that a certain stock will reach a particular price in the future, they can set a GTC order to automatically execute the trade once that price is reached. This allows traders to plan their trades in advance and take advantage of potential price movements.

3. Flexibility

With GTC orders, traders have the flexibility to set their desired price levels and let the market come to them. They are not limited to executing trades only during specific trading sessions or market hours. This can be especially beneficial for traders who have other commitments during regular trading hours or who prefer to trade at their own pace.

4. Emotional Discipline

One of the biggest challenges for traders is managing their emotions. It is easy to get caught up in the excitement or fear of the market and make impulsive trading decisions. GTC orders help traders maintain emotional discipline by automating the execution process. Once the order is set, traders can step back and let the market take its course, reducing the temptation to make hasty or irrational decisions.

Implementing GTC Orders

To implement a GTC order, traders need to follow a few simple steps:

1. Choose Your Trading Platform

First, select a trading platform that supports GTC orders. Most reputable online brokers and trading platforms offer this option.

2. Set Your Price Target

Determine the price at which you want to buy or sell the asset. This should be based on your analysis and trading strategy.

3. Set the Order Type to GTC

When placing the order, make sure to select the GTC order type. This will ensure that the order remains active until it is executed or canceled.

4. Monitor and Adjust

Regularly monitor the market to see if your GTC order has been executed or if any adjustments need to be made. Market conditions can change, so it is important to stay informed and adapt your strategy accordingly.

A Good 'Til Canceled (GTC) order is a powerful tool for traders looking to implement long-term trading strategies. By setting a GTC order, traders can define their desired price target and let the market come to them. This eliminates the need for constant monitoring and manual order placement, providing convenience, efficiency, and emotional discipline. Whether you are a seasoned trader or just starting out, consider incorporating GTC orders into your trading strategy to take advantage of long-term opportunities in the market.

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