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Saturday, January 17, 2009

Day Order, Good Till Cancelled (GTC) Order & Good Till Date (GTD) Order

The following are types of orders related to the TIMING / DURATION of the Order in which the order will still be active / valid before it gets executed:

Day Order
A Day Order is an order that expires automatically after the end of the trading day (when market closes) if the order is not filled yet during the trading hours of the day.
Day Order is normally set as a default order, unless you set your order with other types of order.

Good Till Cancelled (GTC) Order
Good Till Cancelled (GTC) Order is an order that remains valid until you manually cancel it or until the order is filled. This kind of order does not expire automatically at the end of the day.

Brokerages would normally limit the maximum time for an order to be active up to 90 days. GTC order is normally used for entry order using Limit Order.
However, GTC order is also more common to be used for exit orders for setting stop loss or profit taking orders that can last for several days, weeks or even months.

Good Till Date (GTD) Order
Good Till Date (GTD) Order is an order that remains valid until the close of the market on the date specified, or until the order is filled.

For the list of other types of order, go to: Types of Orders in Trading.

Related Topics:
* FREE Trading Educational Resources You Should Not Miss
* Getting Started Trading
* Options Trading Basic – Part 1
* Options Trading Basic – Part 2