Day Orders and GTC Orders
Good for Day Orders, popularly known as Day orders are unspecified orders which expires within the order entered day, unless executed. These orders usually have price points closer to the current market price. Day orders entered after the trading hour will remain open for the next trading day. They are better for traders trading with short-term goals.
Good Till Cancelled or GTC orders specified orders which remain open until they are cancelled by the trader or executed by the broker. Most brokers keep these orders open for 60 days unless executed. GTC orders typically have price points much higher than that of order entered day. The broker executes the order when the price reaches the specified point. The execution fee may differ for GTC orders, as their may be separate commissions for fulfilling a big order by several days; but there is usually no commission change for executing an order by multiple transactions in the same day.
GTC orders are available for stocks and options. They hold many advantages over day orders, as order execution for better prices, longer execution period, flexibility in canceling an order based on trading trends for a number of days, etc. But many traders won’t remember they have entered a GTC order couple of days after the entering day. The traders also have to fulfill some requirements of their brokers, and the corporate actions on the stocks may affect the order executions.
Good Till Cancelled or GTC orders specified orders which remain open until they are cancelled by the trader or executed by the broker. Most brokers keep these orders open for 60 days unless executed. GTC orders typically have price points much higher than that of order entered day. The broker executes the order when the price reaches the specified point. The execution fee may differ for GTC orders, as their may be separate commissions for fulfilling a big order by several days; but there is usually no commission change for executing an order by multiple transactions in the same day.
GTC orders are available for stocks and options. They hold many advantages over day orders, as order execution for better prices, longer execution period, flexibility in canceling an order based on trading trends for a number of days, etc. But many traders won’t remember they have entered a GTC order couple of days after the entering day. The traders also have to fulfill some requirements of their brokers, and the corporate actions on the stocks may affect the order executions.
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posted by NobleTrading at
2:52 AM
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