Good-Til-Canceled Order
A good-til-canceled (GTC) order stays active until it is filled or the investor cancels it, rather than expiring at the end of the trading day.
When you place an order, you also choose how long it should stay active, a setting known as time in force. The two most common choices are day orders and good-til-canceled orders. A day order expires automatically if it is not filled by the end of the trading session. A good-til-canceled order, often shortened to GTC, remains open across many days.
GTC orders are mostly used with limit and stop orders. For example, an investor may want to buy a stock only if it falls to a certain price and does not want to re-enter the order every morning.
In practice, GTC does not mean forever. Most brokers cancel GTC orders automatically after a set period, often 60 to 180 days, and the order may be adjusted or canceled after certain corporate actions such as stock splits.
Example: you place a GTC limit order to buy 20 shares at $45 while the stock trades at $50. Three weeks later the price dips to $45 and your order is filled. The risk is forgetting about an old order that executes after circumstances have changed.