What is GTC Order? Good Till Cancelled Order Explained
A GTC order, or Good Till Cancelled order, is a type of order that remains active until you manually cancel it or it gets executed, whichever comes first. Unlike regular day orders that expire at the end of the trading session, a GTC order carries forward to the next day, next week, or even longer, depending on the broker's specific policy.
Say you want to buy Infosys at Rs.1,400 but the current price is Rs.1,500. If you place a regular limit order, it will expire unfilled at 3:30 PM today if the price does not reach Rs.1,400. With a GTC order, the same instruction stays active for days or weeks, waiting for the price to hit your target without you having to re-enter the order every morning.
How does a GTC order differ from a day order?
| Feature | Day Order | GTC Order |
|---|---|---|
| Duration | Expires at end of trading day (3:30 PM) | Stays active for days or weeks |
| Re-entry needed? | Yes, every day if not filled | No, stays until cancelled or filled |
| Default type | Most broker platforms default to day | Must be selected manually |
| Best for | Same-day trades | Target-price buying over time |
| Broker support | Universal | Not all brokers offer full GTC |
When is a GTC order useful?
GTC orders are useful when you have a specific price target and are willing to wait for the market to come to you. Long-term investors who want to add to their portfolio at a particular valuation level often use GTC orders. They set the price, walk away, and the order waits patiently until the stock reaches that level.
This approach avoids the daily routine of logging in, checking the price, and placing a fresh order every morning. It is especially helpful for busy investors who cannot monitor markets throughout the day but have a clear idea of what price they consider fair for a specific stock.
What are the things to watch out with GTC orders?
Market conditions change. A price that seemed fair when you placed the GTC order might no longer be appropriate weeks later if the company's fundamentals have changed. Regularly reviewing your open GTC orders is important.
Also check your broker's specific GTC validity period. Some brokers allow GTC orders to stay active for 30 days, others for 365 days, and some have different limits. After the validity period, the order is automatically cancelled. Check your broker's GTC policies before using this order type.
Investments in securities market are subject to market risks. This article is for educational purposes only.
Frequently Asked Questions
Does Stockk support GTC orders?
GTC order support varies by broker and can change with platform updates. Check the order type options available on your trading platform or contact support for the latest information. Some brokers offer GTC through the app while others offer it only through their web platform. You can explore order types at stockk.trade/products/equity.
Is there a charge for keeping a GTC order active?
No. There is no additional fee for placing or maintaining a GTC order. You only pay brokerage and exchange charges when the order actually executes. An unfilled GTC order that sits in the system for 30 days costs you nothing.
What happens to my GTC order if the company announces a stock split or bonus?
Most brokers cancel open GTC orders when a stock undergoes a corporate action like a bonus issue, stock split, or rights issue. This is because the share price adjusts after the corporate action and your original GTC price would no longer be appropriate. You need to place a new order at the adjusted price after the corporate action is completed.
Can I modify a GTC order after placing it?
Yes. You can modify the price, quantity, or other parameters of a GTC order at any time, as long as it has not been executed. The modified order continues with the remaining validity period from the original order date in most cases.
What if my GTC buy order fills at a time when I no longer want the stock?
This is a real risk. If you placed a GTC buy order weeks ago and forgot about it, the order can execute when the stock reaches your price, even if your view on the stock has changed. Reviewing and cleaning up pending GTC orders periodically prevents unwanted fills. Set reminders to review open orders at least once a week.
Investments in securities market are subject to market risks. This article is for educational purposes only and does not constitute investment advice.
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