Understanding GTC in Trading: What Is Good-Till-Canceled and How It Works

When you place a trade, you have options beyond just “buy now” or “sell now.” Time in Force settings let you control exactly how and when your orders execute in the market. GTC, or Good-Till-Canceled, is one of three primary execution strategies available for limit orders. If you’re serious about improving your trading strategy, understanding these options can make a significant difference in how your orders get filled and at what price.

What Is GTC? The Good-Till-Canceled Order Explained

GTC stands for Good-Till-Canceled, and it’s straightforward: your order remains active in the market until one of two things happens—either it gets fully executed or you manually cancel it. There’s no time limit, no automatic expiration. You place an order at your desired price, and it just sits there waiting for the market to come to you.

This approach appeals to patient traders who aren’t in a rush. If you believe Bitcoin should reach $50,000 but it’s currently at $45,000, you can place a GTC buy order at $50,000 and walk away. Days later, if the price eventually climbs to that level, your order executes automatically. Meanwhile, you retain complete control—cancel it anytime if your market outlook changes or if you no longer want that position.

When to Use GTC: Ideal Scenarios and Trader Profiles

GTC works best for traders with a longer-term perspective or those managing multiple positions simultaneously. Position traders and swing traders frequently rely on GTC because their strategies often involve waiting for specific price levels that might take days or weeks to materialize.

Consider a scenario where you’re managing a portfolio of five different assets and want to set buy orders for each at predetermined prices. With GTC, you can set all five orders at once and forget about them until market conditions trigger your entries. It’s efficient and keeps your capital deployed according to your predetermined plan, not based on emotional market movements.

Long-term investors also appreciate GTC’s flexibility. Instead of obsessing over short-term price fluctuations, they can set their positions and adjust only when their investment thesis changes. This reduces the psychological burden of constant monitoring.

However, GTC comes with a tradeoff: there’s no guarantee your order will ever execute. If the market never reaches your specified price, you’re left holding nothing. That’s why many traders combine GTC with careful stop-loss planning.

FOK vs IOC: Other Time in Force Alternatives

While GTC prioritizes patience, two other execution strategies prioritize immediacy. Understanding when to deploy each one is crucial.

Fill or Kill (FOK) is the “all or nothing” approach. Your order must execute completely at your specified price or better immediately. If the entire order size isn’t available at that price right now, the entire order gets canceled without any partial fills. This strategy appeals to scalpers and day traders hunting for specific short-term opportunities. If they can’t get the full position at the desired price this second, they’d rather not trade at all—staying disciplined about entry conditions.

Immediate or Cancel (IOC) is the middle ground. Like FOK, it demands immediate execution, but IOC accepts partial fills. If you place an order for 10,000 contracts at $8,001 and only 5,000 are available at that price, IOC executes those 5,000 immediately and cancels the remaining 5,000. This strategy protects you from your order getting executed at progressively worse prices as it eats through the order book.

Real-World Example: Comparing GTC, FOK, and IOC in Action

Imagine you want to buy 10,000 contracts, but you absolutely don’t want to pay more than $8,001. Here’s what the current market looks like:

Available Liquidity:

• $8,003: 3,000 contracts
• $8,002: 5,000 contracts
• $8,001: 5,000 contracts
• Last traded price: $8,000

Now let’s see how each Time in Force strategy handles this situation:

Using GTC: Your order places 5,000 contracts at $8,001 immediately (matching the available supply), and the remaining 5,000 contracts enters the order book as a pending order, waiting for additional supply to appear at that price level. You get a partial fill right away while maintaining your position in queue.

Using FOK: Since only 5,000 contracts exist at your price or better (not the full 10,000 you requested), the entire order cancels immediately. Zero contracts execute. You get nothing, protecting you from a partial fill but potentially missing the opportunity entirely.

Using IOC: Exactly 5,000 contracts fill at $8,001 instantly, and the unfilled 5,000 contracts cancel automatically. You get a partial position filled at your preferred price without any contracts being executed at worse prices below your limit.

Choosing Your Time in Force Strategy: A Quick Guide

Here’s how to match your trading style with the right Time in Force approach:

Choose GTC if you’re patient, can define specific price targets in advance, and don’t mind waiting days or weeks for execution. It’s ideal for position traders and investors who want to avoid market-induced emotional decisions.

Choose FOK if you’re a scalper or day trader looking for surgical precision—you want either your exact position size at your exact price or nothing at all. Partial fills disrupt your carefully planned risk-reward calculations.

Choose IOC if you’re trading larger orders in fast-moving markets and want protection against slippage. You’d rather get a partial fill at your intended price than watch your order chase the market downward as it gets progressively executed at worse levels.

Most successful traders use all three strategically. They might deploy IOC for opening a large position quickly, then switch to GTC for scaling out incrementally, and use FOK for tactical opportunities requiring precision entry points. Your choice should depend on market conditions, position size, and your specific trading goals in that moment.