What is the full form of VTC in the Share Market?
The VTC full form in the share market is Valid Till Canceled. This is a facility that traders can use to place buy and sell limit orders in the stocks of their choice by specifying the period for which they require the order instruction to be valid. The order will get executed automatically when the stock reaches the set price, or else it will get canceled after the tenure of 45 days.
Features of valid till cancel orders in the stock market:
The valid till cancel orders are available for both cash and margin client mode products under the futures and equity segment. These orders are generally used by investors and traders who have a specific target price in mind and are thinking of extending the period of the market to reach that price. The main advantage of these orders is that they avoid the need to re-enter the same order.
How does the VTC order work?
A trader will place a VTC order after specifying the security, the desired price, and the number of shares. This order will remain active until the security is bought or sold at the pre-determined price or until the trader cancels the order. If the market price meets the specified conditions, the order will be executed.