Good until canceled (gtc): definition, examples, and how it works

Good until canceled (GTC) orders are a routine yet powerful routing option for traders who want an order to remain live beyond a single session. In equity and futures markets, a GTC instruction lets an investor specify a target price and leave the order standing until it executes or is explicitly removed, relieving the trader from constant market monitoring. Brokerages implement GTC differently — some cap duration, others auto-expire after a set window — which affects strategy design for both retail and institutional participants. Practical deployment spans exit strategies, limit fills during volatile windows, and automated position building or reduction across multiple trading venues such as the NASDAQ and NYSE. The following sections define the term, detail operational mechanics, list key features, summarize contract-level specifics in one table, and assess market effects, benefits and risks with concrete examples and brokerage practice notes.

Definition

Definition

Good until canceled (GTC) is an order instruction that keeps a buy or sell order active until it is executed or explicitly canceled by the trader.

• Key element: persistence of order beyond a single trading day.

Key insight: the defining attribute of a GTC order is its persistence relative to a day order, enabling price-seeking over time rather than within a single session.

What is Good until canceled (GTC)?

What is Good until canceled (GTC)?

Good until canceled (GTC) is a standing order type used by market participants to buy or sell securities at a specified price level that remains active until execution or manual cancellation. In futures and equities, the instruction changes only the order’s lifespan, not its execution mechanics; the order may be a limit, stop-limit, or stop order but with a persistent expiration rule. Traders use GTC when a target price is judged reachable over an extended horizon, allowing the order to capture price moves driven by macro events, earnings, or seasonal flows.

What makes GTC distinct in futures markets is the interaction with margin, contract rollover, and venue-specific rules. A GTC placed against a futures contract must account for contract expiration and delivery cycles; many platforms will automatically roll or cancel open derivative orders at contract expiry. For cash equities, brokerages such as TD Ameritrade, E*TRADE, Charles Schwab, Robinhood, Fidelity, Interactive Brokers, Merrill Edge, and Vanguard implement varying GTC policies — from automatic 30–90 day expirations to explicit indefinite persistence subject to regulatory limits.

• GTC preserves a trader’s target price over multiple sessions.
• Execution depends on market liquidity and available counterparty interest.
• Broker defaults (auto-expiration) impact effective lifespan and must be checked.
• GTC can be attached to limit or stop-limit orders but not all order types.

Example: a trader at a small hedge fund instructs a sell limit GTC on a stock listed on the NASDAQ above a current resistance level, allowing the order to sit while the trader focuses on portfolio rebalancing rather than intraday monitoring.

Key insight: GTC is a persistence control — it does not alter how orders match on the book, but it affects timing and exposure to market drift.

Key Features of Good until canceled (GTC) and How It Works

Key Features of Good until canceled (GTC)

This section lists the structural and operational features that define Good until canceled (GTC) orders in both equity and futures contexts. Each feature has practical consequences for execution strategy, risk controls, and margin planning.

• Duration: GTC orders endure beyond a single trading session; broker policies often impose specific maximum windows (commonly 30–90 days for equities).
• Order Type Compatibility: GTC is typically paired with limit and stop-limit orders; market-on-open/close and certain conditional order types may not support indefinite persistence.
• Auto-expiry Policies: Firms like Charles Schwab and Interactive Brokers may auto-expire GTCs after a period; platform documentation should be consulted before use.
• Margin Treatment: For futures, margin requirements remain active while a GTC is open; for equities, broker margin policies may apply if the order would create or modify leveraged exposure upon execution.
• Contract/Instrument Specifics: For futures, contract rollovers, delivery dates, and calendar spreads affect how a GTC is handled at expiry.
• Visibility: GTC orders appear on exchange order books until matched or removed, contributing to displayed liquidity.
• Cancel-on-Fill and Replace Behavior: Some platforms allow conditional replacement or automatic cancellation of related orders once a GTC fills.

How Good until canceled (GTC) Works

In practice, a GTC instruction sets order persistence while other execution parameters remain unchanged. The underlying asset can be an equity listed on NASDAQ or NYSE, a listed futures contract, or an ETF. The order’s specifications include price, quantity, and type (limit or stop-limit), and the brokerage enforces margin and settlement requirements until the order executes or is removed.

Example: a trader enters a GTC limit sell for 1,000 shares at $50 on a stock that trades on the NASDAQ. The order remains on the book across sessions. If the stock reaches $50 during an intra-day spike, the order will execute; if it never reaches $50, it stands until canceled or auto-expires per broker policy.

• Underlying assets: equities, futures, ETFs — each with specific lifecycle rules.
• Contract specifications: price tick, lot size, and expiry (for futures) constrain GTC use.
• Margin and settlement: brokers maintain collateral calculations while orders are open.

Key insight: GTC changes the temporal dimension of order placement — trading strategy must adapt to the persistence and platform-specific expiry behavior.

Good until canceled (GTC) At a Glance and Main Uses

Good until canceled (GTC) At a Glance

• Reference: platform documentation and exchange rules should be consulted for exact GTC handling on NASDAQ or NYSE.
• Further reading: see FuturesTradingPedia guides on order types and bid mechanics via Futures Orders: Definition & How They Work and Bid Price: Definition & Examples.