IF you submit a order to today's typical market, It will expire after market closed (means after trading hours). But Some time traders need to continue this order from the next day market open. For this matter trader need to manually submit a new order with same information at next trading day and have to continue this until order execute. This is a time consuming and resource wasting matter.
After considering above requirement and to get rid of the effort that need to spend on the matter the GTC Order purposed.
GTC simply means Good Till Cancelled.
This order would not cancelled until the trader manually cancelled it. So as typical trading order, this doesn't expire after market closed. But most of the exchanges legally not support this kind of orders. But Trading brokers having some tricky methodology to implement this concept to there clients.
Most of the brokers allow clients to submit GTC orders to the brokerage and every day morning there systems take the responsibility to submit a dally order to exchange with same information. But client cannot trace the internal behaviour of the brokerage and the brokerage stem show it as a not-cancelled order to outside until client candled it. Every functionality encapsulate inside the brokerage systems, but actually everyday when market start brokerage systems submit a new order to represent clients GTC order.
Now you may think GTC orders never expired if trader would not cancelled it. But in actual case brokerage decide a expire time for the order. If trader wouldn't cancelled GTC order until the expire time, It will automatically expire and not submit to the market at next trading day. This expire time can be vary for brokerage to brokerage. Some brokerages pre decide expire date as seven days, fourteen days, thirty days from the order submit day. If order executed before expire or candled by the trader, It will process like normal order executed.
After considering above requirement and to get rid of the effort that need to spend on the matter the GTC Order purposed.
GTC simply means Good Till Cancelled.
This order would not cancelled until the trader manually cancelled it. So as typical trading order, this doesn't expire after market closed. But most of the exchanges legally not support this kind of orders. But Trading brokers having some tricky methodology to implement this concept to there clients.
Most of the brokers allow clients to submit GTC orders to the brokerage and every day morning there systems take the responsibility to submit a dally order to exchange with same information. But client cannot trace the internal behaviour of the brokerage and the brokerage stem show it as a not-cancelled order to outside until client candled it. Every functionality encapsulate inside the brokerage systems, but actually everyday when market start brokerage systems submit a new order to represent clients GTC order.
Now you may think GTC orders never expired if trader would not cancelled it. But in actual case brokerage decide a expire time for the order. If trader wouldn't cancelled GTC order until the expire time, It will automatically expire and not submit to the market at next trading day. This expire time can be vary for brokerage to brokerage. Some brokerages pre decide expire date as seven days, fourteen days, thirty days from the order submit day. If order executed before expire or candled by the trader, It will process like normal order executed.
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