Cryptocurrency Q&A
Does GTC expire?
Does GTC expire?
Silvia
Thu Jul 25 2024
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7 answers
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I'm curious about the validity of GTC orders in the cryptocurrency market. Does a Good Till Cancelled (GTC) order eventually expire, or do they remain active indefinitely until they are either filled or manually cancelled by the trader? I understand that different exchanges may have their own rules regarding this, but I'm interested in knowing the general practice within the industry. Is there a standard timeframe after which a GTC order will automatically be cancelled, or is it up to the discretion of the exchange to decide?
7 answers
charlotte_anderson_explorer
Sat Jul 27 2024
However, it's crucial to note that the name "Good-Til-Canceled" does not necessarily imply indefinite validity. In practice, most brokers impose an expiration period on GTC orders to prevent them from lingering indefinitely in the system.
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FantasylitElation
Sat Jul 27 2024
Typically, brokers set the expiration of GTC orders anywhere between 30 to 90 days from the time they are placed. This timeframe ensures that traders remain engaged with their orders and have the opportunity to reassess their strategies as market conditions evolve.
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Pietro
Sat Jul 27 2024
GTC orders, or Good-Til-Canceled orders, present an alternative strategy to the commonly used day orders in cryptocurrency trading. These orders differ in their duration and applicability, offering traders a more flexible approach to managing their positions.
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CosmicDream
Sat Jul 27 2024
The implementation of an expiration period for GTC orders serves a dual purpose. Firstly, it protects traders from unexpected outcomes that may arise if a long-forgotten order were suddenly filled. Secondly, it helps maintain the liquidity and efficiency of the cryptocurrency market by reducing the number of stale or outdated orders in the order book.
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CryptoVisionary
Sat Jul 27 2024
Unlike day orders, which automatically expire at the end of the trading day if they remain unfilled, GTC orders maintain their validity beyond a single trading session. This feature allows traders to set orders and forget about them, freeing up their time for other tasks.
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