Introduction

When placing an order, you will have the option to choose between two Time-In-Force orders, which are Day order or Good’Til Canceled (GTC) order. Let's figure out how to place them and what the differences are.

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What is a Day Order?

On trading days, the US stock market closes at 16:00 ET. In the event that you choose a Day order, all your pending working orders will be cancelled at 16:00 ET or 20:00 ET (if the option to include the extended hours is included).

Example

For instance, a Day order is chosen when you can place a limit day order on stock B at USD5.50, which is currently trading at a market price of USD6.00.

There are two possible scenarios:

• The market price falls and hits your limit price at USD5.50 before 16:00 ET, and the order is filled at USD5.50 or less.
• The price does not fall enough to trigger the limit order. Your pending order will be automatically cancelled at 16:00 ET.

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A Day order provides you with greater flexibility to control your order placing. You can wait before deciding whether to adjust the price or not place the order if you are concerned the market will be too volatile on the following trading day.

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What is a GTC Order?

A GTC order is valid until the order is completed or cancelled. Generally, all active GTC orders expire 90 calendar days after they are placed on Webull. Both regular trading hours and extended hours (from 04:00 to 20:00 ET on trading days) are available for placing GTC orders which could also be modified and cancelled at any time.

Please note, all open GTC orders will generally be cancelled in the event of any corporate action (stock split, exchange for shares, or distribution of shares).

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How to Trade with GTC Orders

Example

For instance, a GTC order is chosen when you can place a limit order on stock B at USD5.50 which is currently trading at a market price of USD6.00.

There are two possible scenarios:

• Market price falls below USD5.50 to trigger your limit order in 90 days. The order will be filled at USD5.50 or below.
• The market price keeps rising and fails to hit USD5.50. The pending order will be automatically expired after 90 days.

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The Bottom Line

• Use a Day order if you want your order to last for only a day. The order can always be placed again at your convenience on the following day.
• Use a GTC order if you want your order to last longer so that it doesn’t have to be placed multiple times. The order can always be cancelled or modified at any time before it is filled.