Definition of GTC Order

What is the definition of the term "GTC order" as it applies to the stock market? What does the term "GTC order" mean?

A "GTC order" refers to an order being active until either:

a) the order fills
b) the order is cancelled

The "GTC" in "GTC Order" stands for "Good Till Cancelled". So, if you set an order as a "GTC order", this means that the order will continue working until the order fills or the order is cancelled by you.

Let's take a look at an example.

You are looking to buy some shares of Microsoft, but feel that the shares are going to pull back. Shares of Microsoft are trading at a fictional level of $20, and you feel that shares of the company are going to pull back to $19.

You enter a limit buy order at $19, which means that the order will fill if Microsoft trades down to $19.

You decide to set this as a "GTC order", which means that the order will continue to work until it is filled or cancelled. So, if it takes Microsoft four months to trade down to $19, your order will be filled on the day that it trades down to $19, assuming that you haven't cancelled your order.

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