A GTC order (Good-Til-Cancel) is an order that stays active until you manually cancel it. It doesn't expire at end of day.
How It Works
You place a GTC limit order to buy a call at $2.50. The order stays active day after day, week after week, until either:
- The call hits $2.50 (order fills)
- You manually cancel it
- Your broker imposes a maximum GTC time (typically 90 days)
Pros
- Passive Entry: Set it and forget it; it fills when your price is hit
- Patience Reward: Sometimes takes weeks for your price to hit
- No Resubmission: Don't have to re-enter every day
Cons
- Forgotten Orders: Easy to forget about old GTC orders
- Price Changes: Your limit price might become irrelevant as conditions change
- Time Limits: Brokers usually cancel after 90-180 days if not filled
When to Use
- Longer-term limit orders you're willing to wait on
- Trading less liquid options
- When you have a target price and are patient
Caution
Review your GTC orders regularly. Markets change; your limit price might be unrealistic today.
Best Practice
Use GTC for strategic entries on good setups. Set calendar reminder to review every 30 days.
Related: Day Order, Limit Order, Order Types
