Time in Force Orders: GTC, IOC, and More

When you place a trade, you not only choose what to buy or sell, but also how long your order should stay active. This is where Time in Force (TIF) instructions come in.

🕒 What is Time in Force?

Time in Force tells your broker how long your order should remain open before it’s executed or canceled. 👉 Think of it like setting an expiration date on your trade.

📌 Common Types of Time in Force

1. Day Order — Active only for the current trading day. If it’s not filled by market close, it gets canceled automatically. Good for short-term trades. 👉 Example: You place a limit order to buy at $50. If it doesn’t hit $50 today, the order disappears at the end of the day.

2. GTC (Good-Til-Canceled) — Stays active until it’s filled or you cancel it. Many brokers limit this to 30–90 days. Great for patient traders waiting for the perfect price. 👉 Example: You want Apple at $140 even if it takes weeks. A GTC order waits until the stock hits that level.

3. IOC (Immediate-Or-Cancel) — Your order must be filled immediately or canceled. If only part of it can be filled, the rest is canceled. Used when speed is critical. 👉 Example: You place an IOC to buy 100 shares. If only 60 are available instantly, you get 60, and the other 40 vanish.

4. MKT or FOK (Fill-Or-Kill) — Similar to IOC, but stricter. The order must be filled completely, right away, or not at all. Common in fast markets where partial fills aren’t acceptable. 👉 Example: You want exactly 500 shares at $20. If all 500 aren’t available instantly, the order is killed.

🧠 Why Time in Force Matters

Helps you control risk by avoiding forgotten orders. Useful for different strategies: Swing traders love GTC for patient entries. Scalpers/day traders use IOC/FOK for speed. Casual traders often stick with day orders.

🎯 Quick Takeaways

Day = valid only today. GTC = stays open until filled or canceled. MKT = market order fill at market makers price. IOC = fill now or cancel remainder. FOK = all or nothing, instantly. 👉 Knowing how Time in Force works helps you control your trades and avoid surprises.

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