What Does 60 Day GTC Mean in Stock Trading?

Investors use various order types to buy or sell securities at desired prices or under particular market conditions. Among these, the “Good ‘Til Cancelled” (GTC) order, often paired with a specific time limit like “60 days,” provides a defined instruction for a trade to remain active over an extended period.

Understanding Good ‘Til Cancelled Orders

A Good ‘Til Cancelled (GTC) order is a directive given to a brokerage to buy or sell a security that remains active until it is either executed at the specified price or manually canceled by the investor. This order waits for desired price conditions. GTC orders differ significantly from “day orders,” which automatically expire if they are not filled by the end of the trading day. GTC orders persist across multiple trading sessions, allowing investors to set a target price without re-entering the order daily. This offers flexibility for investors who may not constantly monitor market prices.

The 60-Day Time Limit

The “60-day” aspect of a GTC order signifies a specific duration after which the order will automatically expire if it has not been executed or manually canceled. While “Good ‘Til Cancelled” suggests an indefinite duration, most brokerage firms impose a maximum time limit on GTC orders to prevent forgotten or “stale” orders from being unexpectedly filled. This limit can vary, with common expiration periods ranging from 30 to 90 days, though 60 days is a frequently offered duration. If an order reaches this 60-day expiration date without being filled, it will be automatically canceled by the brokerage. This feature is typically a broker-specific or platform-specific rule rather than a universal market regulation.

Reasons to Use a 60-Day GTC Order

Investors often choose a 60-day GTC order when they aim to buy or sell a stock at a specific price point but do not need immediate execution. This order type is useful for those who cannot constantly monitor the market. For instance, an investor might place a GTC buy order at a price below the current market value, anticipating a future dip, or a GTC sell order above the current price, expecting a rally. This allows investors to set long-term price targets and wait for favorable market conditions, reducing the need for continuous oversight. It also helps in managing risk by allowing the placement of stop-loss orders that remain active for an extended period.

Managing 60-Day GTC Orders

Once a 60-day GTC order is placed, investors should actively monitor its status and be aware that market conditions can change significantly over time. A target price that seemed appropriate when the order was placed might become less relevant due to new company developments or broader economic shifts. Investors have the ability to manually cancel or modify their GTC orders at any time before they are executed. If an order is partially filled, the remaining portion typically stays active as a GTC order until it is fully executed or expires. Regular review of active GTC orders is a prudent practice to ensure they continue to align with current investment strategies and market realities.