good-till-canceled
A type of order that remains active until it is either executed or manually canceled by the investor, unlike a day order which expires at day's end.
Example
“She placed a good-till-canceled limit order at $45 and it executed six weeks later when the stock finally dipped to that price.”
Memory Tip
GTC = stays active until CANCELED. Set it and forget it — but remember to cancel it later.
Why It Matters
Good-till-canceled orders help investors maintain discipline by allowing them to set price targets without needing to resubmit orders daily. This is especially valuable for people with busy schedules who want to execute trades at specific price points without constant monitoring or repeated order entries.
Common Misconception
Many people incorrectly believe that good-till-canceled orders will remain active indefinitely across months and years. In reality, most brokerages automatically cancel these orders after 30 to 90 days of inactivity, requiring investors to resubmit them if they still want the trade to execute.
In Practice
Suppose you own shares of a stock trading at 45 dollars and you want to sell if it reaches 55 dollars. You place a good-till-canceled sell order at 55 dollars. If the stock climbs to 55 dollars next week, your order executes automatically without any action needed from you. However, if weeks pass and the stock never reaches that price, your broker may cancel the order after 60 days, and you would need to place a new one.
Etymology
GOOD (valid, active) TILL (until) CANCELED (terminated). An order GOOD until you CANCEL it.
Common Misspellings
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Related Terms
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See Also
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