When you are placing limit buy order there are 2 options of expiration “End of day” which is obvious for me and there is “GTC” option which I don’t understand. Can someone please explain that?
GTC = Good til cancelled. However, most brokers set GTC orders to expire 30 to 90 days after investors place them to avoid a long-forgotten order suddenly being filled.
GTC means good till cancelled so the limit will continue until either you cancel it or the price is reached and the buy order is triggered.
GTC is useful, but I have noticed that you face a restriction in how far from the quoted price you can deviate so you cant effectively place an order in anticipation of a crash or strong bearish sentiment.
I typically set it as low as possible and either cancel or update the figure after a week had passed.
Would be nice to have this time configurable.
I lile to use GTC actually to set multiple orders at 1%/2% drop levels to nibble small purches when price drops to set levels.