GTC Full Form in Share Market

What is the Full Form of GTC in the Share Market?

The GTC Full Form in the Share Market is Good Til Canceled. They correspond to a type of order that an investor places to buy or sell a security that is active until the investor cancels it or until the order is fulfilled. Generally, brokerages will keep the GTC order open for up to 90 days. Traders generally use the GTC orders to mitigate the everyday management of their portfolio.

Features of GTC orders:

The GTC orders are great alternatives for day orders that generally expire at the end of the trading day. Share brokers would generally set the expiry date of the GTC orders from 30 to 90 days. With these orders, traders need not have a constant watch on the stock price and rather place the buy and sell orders at a specific price point and keep them active for many weeks. Investors can also keep the GTC orders as stop orders at prices well below the market price.

What are the risks associated with GTC orders?

The risks associated with the GTC orders include the execution of the orders at inopportune times, such as during volatility or when prices are fluctuating. Also, some stock exchanges are not accepting GTC orders.