A good cancelled (GTC) order is a type of trade order that remains active until it is either performed or manually canceled by the trader. Unlike a day's order, which ends at the end of the trade session. If it is not performed, a GTC order remains open for an extended period - December, week, or even for months - depends on the broker's guidelines.

Best Situations to Use a GTC Order

1. When You Want to Buy or Sell at a Specific Price

·        If you have a target price but do not want to continuously monitor the market, a GTC order ensures that your business is carried out when the desired level reaches.

2. For Long-Term Investors

·        If you are a long -term investor who wants to buy shares at a lower price or sell at a higher price, GTC bookings help you put a business and forget it until it is done.

3. When Trading in a Volatile Market

·        Volatile markets suddenly experience swings. A GTC order helps you capture opportunities without constant price movements.

4. When Placing Stop-Loss or Take-Profit Orders

·        Traders used GTC orders to set stop losses to protect against losses or when the price reaches a certain level to secure the profits.

5. When Trading Illiquid Stocks

·        Some shares have low trade volumes, which means they are often purchased or sold. A GTC order helps you keep in line until the price meets your terms.

6. When You Want to Avoid Emotional Trading

·        Many traders make decisions due to market noise. A GTC order lets you stick to your strategy without continuously responding to the ups and downs in the market.

When NOT to Use a GTC Order

• If you trade very unstable stock, the price can be quite ups and fast, which can lead to premature execution.
• If the broker interrupts the GTC orders after a certain period, always check the notice rules.

Conclusion

A GTC order is useful when you have a clear value goal and want to automate your business execution without constant market monitoring. However, always review the order time to ensure that it is still in line with your strategy.

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