Financial Word of the Day: Good Till Canceled (GTC)

Larry Jones
Aug 22
2 min read

Updated: Aug 25

Definition of Good Till Canceled

A Good Till Canceled (GTC) order is a standing instruction you place with your broker to buy or sell a security at a specific price that remains active until it’s executed or you cancel it. Depending on the broker, it can sit there for up to 30–90 days before auto-expiring (check your platform’s policy). In short: set it and don’t forget it.

Why It Matters

Markets move while you’re in meetings, at soccer practice, or—let’s be honest—when you finally stepped away to make coffee. A GTC order lets you draw your line in the sand (“I’ll buy at $42, not a penny more”) and keeps that instruction working without you babysitting the screen.

How Good Till Canceled Works

You choose buy or sell.
You set a limit price (the price you’re willing to pay or accept).
You select GTC as the duration.
Your order sits in the market’s queue. If the market touches your price and there’s enough volume, it fills—whether you’re watching or not.

A Quick Example

Let’s say XYZ stock is trading at $47. You’d love to own it at $44. You place a GTC buy limit at $44. Two weeks later, a market dip brings XYZ down to $44. Your order triggers and fills at $44 (or better). No chasing, no FOMO. Just your plan, executed.

Where GTC Shines

Discipline: You pre-decide your entry or exit and avoid emotional decisions.
Convenience: You don’t need to recreate the order every day.
Strategy-friendly: Great for laddering buys on dips or setting staggered profit targets on the way up.

Common Pitfalls (and How to Dodge Them)

“Out of sight, out of mind.” GTC doesn’t mean “set-and-ghost.” Prices, news, and your thesis can change. Review your open orders weekly.
Partial fills: If there isn’t enough volume at your limit price, you may get a partial fill. That’s normal—just decide in advance if you’re okay with it.
Gap risk: If a stock gaps past your price (say, overnight), you might not get filled at all. GTC isn’t a magic fill button; it’s a standing request.
Forgetting the plan: If you placed a GTC sell at a profit target months ago, don’t be surprised when it triggers during a random Tuesday staff meeting. That’s the point—just remember why you set it.

Good GTC Habits

Pair GTC buy limits with a separate GTC sell (profit target) once filled.
For risk management, consider using stop-loss orders (often “Good ’Til Date/GTD” or “GTC” depending on your broker) to cap downside.
Keep a simple spreadsheet or note listing your open GTCs, the thesis, and a review date.

Bottom Line

A Good Till Canceled order is a practical tool for busy investors who want the market to meet their terms. Use it to enforce discipline, automate your plan, and avoid impulse trades. Just keep an eye on your standing orders—because “set it and forget it” works for slow cookers, not portfolios.