Good-Till-Cancelled Order
A good-till-cancelled (GTC) order is a buy or sell instruction that remains active until it is either executed or explicitly cancelled by the investor, as opposed to expiring at the end of the trading day.
Most order types in U.S. equity markets default to 'day order' status, meaning they automatically expire at the close of the regular trading session if not filled. A good-till-cancelled (GTC) order overrides this default and persists across multiple trading days — sometimes weeks or months — until the investor cancels it or the order is executed.
GTC orders are commonly used when an investor has a specific target buy or sell price in mind but is not certain when, or whether, the market will reach that price. For example, an investor who believes a stock is fairly valued at $30 but is currently trading at $38 might place a GTC limit order to buy at $30. If the stock retreats to $30 at any point during the life of the order, the purchase will be executed automatically.
In practice, U.S. broker-dealers impose their own maximum durations on GTC orders. Many major retail brokers cap GTC orders at 60 or 90 calendar days, after which they cancel the order automatically. Investors should verify their specific broker's policy. Some brokers send reminders or notifications before GTC orders expire, but this is not universally guaranteed.
An important risk of GTC orders is the possibility of an unintended execution after an investor has mentally abandoned the trade. If an investor placed a GTC buy order months ago and forgot about it, a sharp market sell-off could trigger the purchase at a time when the investor's thesis or financial situation has changed. Periodic review of all open GTC orders is therefore a sound practice.
GTC orders also interact with corporate actions. Stock splits, dividend payments, and other events can change the economics of an existing limit price. Some brokers automatically adjust GTC limit prices for stock splits; others do not. Investors should understand how their broker handles these situations. Under SEC and FINRA rules, broker-dealers are required to maintain books and records of all open orders, including GTC orders, providing investors the ability to verify the status of outstanding instructions at any time.