When you want to buy a stock at a specific price but are willing to wait for the market to come to you, good til canceled orders are your friend. They remain active across multiple trading days until they fill or you cancel them. In this guide, we will explain how GTC orders work and how to use them effectively.
What is a Good Til Canceled Order?
A good til canceled (GTC) order is an instruction to buy or sell a stock that remains active until it either executes or you manually cancel it. Unlike day orders that expire at market close, GTC orders persist across multiple trading sessions.
The simple version: A GTC order says "Keep trying to fill this order every day until it fills or I cancel it." You set your price and wait for the market to come to you, even if it takes days or weeks.
How Good Til Canceled Orders Work
Here is what happens when you place a GTC order:
- You place an order with the GTC time in force condition
- The order is active during regular market hours each trading day
- If your price is reached on any day, the order executes
- If not filled, the order remains active for the next trading day
- The order continues until filled, canceled by you, or it reaches the broker's expiration limit
GTC Order Duration Limits
While the name suggests orders last forever, most brokers set limits:
- Typical duration: 60 to 90 days depending on the broker
- Some brokers: Allow up to 120 days or longer
- Automatic cancellation: Orders are automatically canceled after the time limit
- Corporate actions: Orders may be canceled if there is a stock split, dividend, or merger
Check your broker's specific GTC policy so you know when to expect your order to expire.
GTC Order Examples
Example: Buying on a Pullback
Apple is trading at $185 per share. You want to buy if it drops to $170.
- You place a GTC buy limit order for 100 shares at $170
- Week 1: Apple stays above $180, order remains unfilled
- Week 2: Apple drops to $175, order still unfilled
- Week 3: Apple drops to $170, your order fills at $170
Result: You waited three weeks but bought Apple at your desired price of $170 per share, saving $15 per share compared to buying immediately.
Example: Taking Profits
You own 100 shares of Microsoft bought at $350. You want to sell at $400.
- You place a GTC sell limit order at $400
- The order remains active day after day
- Two months later, Microsoft reaches $400 and your order fills
Result: You captured a $50 per share profit ($5,000 total) without having to watch the market every day.
When to Use GTC Orders
GTC orders are most useful in these situations:
- Buying on dips: Set buy orders below current price to catch pullbacks
- Profit targets: Set sell orders at your target price to automatically take profits
- Swing trading: Position orders for trades that may take days or weeks to develop
- Busy schedules: When you cannot monitor the market every day
- Technical levels: Place orders at support or resistance levels you want to trade
- Long term investing: Set buy orders for stocks you want to add at specific prices
Advantages of GTC Orders
- Set and forget: No need to re-enter orders every day
- Patience pays: Wait for your price without constant monitoring
- Disciplined trading: Stick to your entry and exit prices
- Time savings: Place orders once instead of daily
- Capture opportunities: Your order is ready when price reaches your level, even if you are not watching
Disadvantages and Risks
GTC orders have some potential drawbacks:
- Forgotten orders: You might forget about orders and be surprised when they fill
- Changed circumstances: The reason for your trade might no longer be valid by the time it fills
- Gap fills: Orders can fill at your price after a gap, potentially in unexpected situations
- Stale orders: Old orders may no longer reflect current market analysis
- Expiration surprises: Orders expiring after 60-90 days might catch you off guard
Important: Review your open GTC orders regularly. An order that made sense a month ago might not be appropriate anymore due to changing market conditions or new information about the stock.
GTC vs Day Orders: What is the Difference?
The main difference is how long the order stays active:
- Day Order: Expires at the end of the current trading day if not filled
- GTC Order: Remains active until filled, canceled, or expires (typically 60-90 days)
Comparison Example
You want to buy a stock at $50 when it is currently trading at $55.
- Day order: If the stock does not reach $50 today, your order is canceled tonight. You would need to place a new order tomorrow.
- GTC order: If the stock does not reach $50 today, your order remains active tomorrow and the days after until it fills or you cancel it.
Managing Your GTC Orders
Follow these practices to manage GTC orders effectively:
- Keep a list: Track all your open GTC orders in a spreadsheet or trading journal
- Set calendar reminders: Review your open orders weekly or at least monthly
- Update or cancel: Remove orders that no longer fit your strategy
- Note expiration dates: Know when your broker will automatically cancel GTC orders
- Check after corporate actions: Stock splits, dividends, and mergers can affect or cancel your orders
GTC Orders and Extended Hours Trading
Understanding when GTC orders are active:
- Standard GTC orders are typically only active during regular market hours (9:30 AM - 4:00 PM ET)
- They will not fill during pre-market or after-hours sessions unless specifically enabled
- Some brokers offer GTC orders that include extended hours trading
- Check your broker's specific policies on GTC order execution times
Tips for Using GTC Orders
- Be realistic: Set prices that are achievable based on the stock's typical movement
- Use with support and resistance: Place orders at technical levels that have meaning
- Review regularly: Do not set and completely forget. Check your orders periodically.
- Account for news: Be aware that orders might fill during or after unexpected news events
- Combine with alerts: Set price alerts slightly before your GTC order price to give you a heads up
Track All Your Open Orders
Pro Trader Dashboard helps you track your portfolio and trading activity. See your positions, monitor your performance, and stay organized with your trading strategy.
Summary
Good til canceled orders let you place trades that stay active for days, weeks, or months until they execute. They are perfect for patient traders who want to buy at specific prices or set profit targets without watching the market constantly. The key is to review your open GTC orders regularly to ensure they still make sense for your current strategy and market conditions.
Want to learn about other time-based orders? Check out our guide on day orders or learn about immediate or cancel orders.