Good-til-cancelled-order also known as GTC. It is an order that investor place to sell or buy a specific security at certain price. Order remains active until cancelled or executed by the investor. In other words good-til-cancelled-order remains indefinitely till the stated parameters are met, although a normal day, order would annulled automatically when market close, necessitating the financier to make new order in the next day if desires.
Good-til-cancelled-order is an alternative of day trading in which order is expired automatically if remains unfilled at the end of day trading. Through good-til-cancelled-order financiers who may not lookout market price all the time can place sell or buy order at certain price and keep them active for several weeks. If the market price hits GTC order before its expiry, the trade will implement. Investors may also place good-til-cancelled-order as buy and stop orders, buy order above the market price and stop order below the market price in order to limit the losses.
Good-til-cancelled-order involves high level of risk, that’s why several exchanges including NASDAQ and New York Stock Exchange no longer accept GTC order and stop order because they believe that such order are risk to the financier while several brokers still offer GTC and stop orders with their other services but they implement them internally.