A Good-Till-Cancelled (GTC) order is a type of trade order that remains active until the trader cancels it or the order is executed. It allows traders to set specific buy or sell instructions that do not expire at the end of the trading day, unlike Day Orders, which are automatically cancelled if not filled by market close.

Understanding Good-Till-Cancelled Orders

A GTC order is useful for traders who want to set entry or exit points without constantly monitoring the market. Once placed, the order remains valid indefinitely until it is either executed at the specified price or manually cancelled by the trader.

For example, if a trader wants to buy a stock at £50 but the current price is £55, they can place a GTC buy order at £50. The order will remain open until the price reaches £50 and executes or until the trader cancels it.

How Good-Till-Cancelled Orders Work

1. Trader Places a GTC Order – Specifies a price level for buying or selling.
2. Order Remains Active – Unlike day orders, it stays open beyond a single trading session.
3. Execution or Cancellation – The order is executed if the price reaches the specified level or remains open until cancelled.

Benefits of Good-Till-Cancelled Orders

• Convenience – No need to manually place orders daily.
• Precision Trading – Helps traders execute trades at preferred price levels without watching the market constantly.
• Effective for Long-Term Strategies – Useful for investors waiting for favourable price levels.

Common Challenges of GTC Orders

• Market Fluctuations – Prices may not reach the specified level for a long time, leaving the order unfilled.
• Brokerage Expiry Limits – Some brokers cancel GTC orders after a set period (e.g., 30–90 days).
• Price Slippage – If the market moves too fast, execution might not happen at the exact specified price.

GTC vs. Other Order Types

Order Type	Validity	Best For
GTC Order	Until executed or cancelled	Long-term strategies
Day Order	Expires at market close	Short-term trades
Good-Till-Date (GTD)	Expires on a set date	Time-sensitive trades
Immediate-Or-Cancel (IOC)	Must execute immediately or cancel	Quick execution
Fill-Or-Kill (FOK)	Must fully execute immediately or cancel	High-volume trades

Best Practices for Using GTC Orders

• Use for Key Support and Resistance Levels – Place orders at critical price points to catch potential reversals.
• Monitor Orders Regularly – Prices and market conditions change, so review GTC orders periodically.
• Set Realistic Price Targets – Avoid setting extreme price levels that may never be reached.
• Check Broker Policies – Some brokers cancel GTC orders after a specified duration.

FAQs

What is a Good-Till-Cancelled (GTC) order?

A GTC order remains active until it is executed or manually cancelled by the trader.

How long does a GTC order last?

It lasts indefinitely unless executed or cancelled, but some brokers set expiration limits (e.g., 30–90 days).

What is the difference between a GTC and a day order?

A GTC order remains active beyond a single trading day, while a day order expires at market close if not executed.

Can I modify a GTC order after placing it?

Yes, most brokers allow modifications to price levels or order size before execution.

Do GTC orders work in forex trading?

Yes, forex traders can use GTC orders to set long-term entry or exit points.

Are GTC orders automatically cancelled after a certain period?

Some brokers may cancel them after a specific period (e.g., 30 days), so check with your broker.

What happens if a GTC order is never executed?

It remains open until the price reaches the specified level or the trader cancels it manually.

Is a GTC order good for stop-loss or take-profit strategies?

Yes, traders use GTC orders to set stop-loss or take-profit levels for long-term positions.

Can a GTC order be partially filled?

Yes, if only part of the order is matched with available liquidity, the remaining portion stays open.

What is the risk of using GTC orders?

The main risk is market fluctuations, where prices may never reach the set level, leaving the order unfilled.

A Good-Till-Cancelled (GTC) order is an essential tool for traders who want to automate their trading strategy without monitoring markets constantly. However, traders must review their orders regularly and ensure they align with current market conditions.