Series 14: 2.3.2.2. Time Orders

2.3.2.2. Time Orders

A time order is one that becomes a market order or limit order at a specified time. If it becomes a limit order, it may or may not be filled. The following are different types of time orders:

• Good for Day (GFD) or Day order. A stop or limit order that is only good from the time it is placed until the end of the trading session of the exchange on which it trades. If it is not filled, it will be canceled.

• Good-’til-Cancelled (GTC) order. An order that persists until the broker cancels it. Some broker-dealers set a time limit on a GTC order, after which it will cancel automatically (e.g., 90 days).

• Fill-or-Kill (FOK) order. An order that must be executed immediately (on the first try) and completely. If it is not, the order will be canceled. FOK orders are usually used with limit orders.

• Immediate-or-Cancel (IOC) order. An order that must be executed immediately or it will be canceled by the exchange. Unlike FOK orders, IOC orders may be partially filled. IOC o