What does a good till cancelled order signify?

What does a good till cancelled order signify?

• A. The order will be filled immediately
• B. The order remains until filled or cancelled by the user
• C. The order will be active for a specific duration
• D. The order is only valid for the trading day

Answer: (B)

A good till cancelled order, often referred to as a GTC order, is designed to remain active in the market until it is either executed or explicitly cancelled by the investor. This type of order allows traders to set their desired price for a security and leave it in the market without the need to continuously monitor it or enter it again every day.

This is beneficial for investors who want to buy or sell a certain asset at a specific price, especially if they expect the price to eventually reach that level but do not have an immediate timeframe. The active status of a GTC order continues beyond a single trading day, distinguishing it from orders that are only valid for the trading day or those with a specific time limit. Such attributes provide greater flexibility for traders in managing their investments over an extended period.