Glossary term
Good-Til-Canceled Order
A good-til-canceled order stays open until it is executed, canceled by the investor, or expires under the brokerage firm’s time limit.
Updated
Read time
What Is a Good-Til-Canceled Order?
A good-til-canceled order, or GTC order, is an order to buy or sell a security that stays open until it is executed, canceled by the investor, or expires under the brokerage firm's rules. It is a time-in-force instruction, not a guarantee that the trade will happen.
GTC orders are often paired with limit or stop orders. They can be useful when an investor wants an order to remain active beyond a single trading day, but they require monitoring because market conditions can change while the order is still open.
Key Takeaways
- A GTC order remains active beyond the trading day unless executed, canceled, or expired by firm rules.
- Brokerage firms may impose their own expiration periods and order-handling limits.
- GTC orders do not guarantee execution or price improvement.
- Investors should review open GTC orders after news, earnings, dividends, splits, or market volatility.
How the Order Works
A day order expires if it is not executed by the end of the trading day. A GTC order keeps working after that point, subject to the broker's time limit and market-session rules. If the limit price is reached and market conditions allow execution, the order may fill.
Order Instruction | What It Does |
|---|---|
Day order | Expires at the end of the trading day if not filled. |
Good-til-canceled | Stays open until filled, canceled, or expired by firm rules. |
Limit price | Sets the maximum buy price or minimum sell price. |
Stop price | Can trigger an order if a specified price is reached. |
Where It Helps
A GTC order can help an investor target a specific price without re-entering the order every day. For example, an investor may place a limit order to buy only if a stock falls to a chosen price, or to sell only if it rises to a target price.
The tradeoff is stale intent. An order that made sense last week may no longer fit after earnings news, a merger announcement, a dividend adjustment, or a broad market move.
What to Watch
Brokerage policies matter. Some firms cancel GTC orders after a set number of calendar days. Some order types may not apply in extended-hours trading. Corporate actions can also cause orders to be adjusted or canceled.
Investors should treat open GTC orders as active decisions. They should be reviewed regularly, especially when the security becomes volatile or new information changes the original reason for the order.
The Bottom Line
A good-til-canceled order keeps an order active beyond one trading day, but it still needs oversight. It can add convenience and discipline, while also creating stale-order risk if the investor stops paying attention.