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Order Duration- GTC vs GTD

Many of you are familiar with the trading acronym GTC which stands for “Good until Cancelled.” A GTC qualifier is placed on limit or stop orders when you want your order to remain open until it executes or until you decide to cancel the order.

The idea sounds simple enough but most brokerage firms do not keep GTC orders open indefinitely. The Scottrade policy is to cancel a GTC order on the last business day of the month following the day in which you placed or modified a GTC order.  For example, if you place a GTC order on August 1 and it does not execute Scottrade will automatically cancel the order on the last business day of September.

What about GTDs?  GTD stands for “Good till date”.  This qualifier offers you even greater flexibility over the expiration date of your order.  You can place a GTD order out to 90 days and even specify to the half an hour in which you would like the order to be cancelled (in the event that it doesn’t fill first).  GTD orders are only available for days in which the market is in session( no weekends or market holidays).



Posted by Web Trader on Aug 22, 2008 2:36 PM CDT

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