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Good Til Canceled

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A good til canceled order is an order to buy or sell a security that remains in effect until the good til canceled order is either executed by a broker or canceled. A good til canceled order is not necessarily perpetual (some plans do offer this option, though); brokers usually set a limit of 30, 60, or 120 days, after which they will cancel it or notify the customer about reactivating it. Whether a broker can cancel a good til canceled order depends on the type of plan the customer chooses. A good til canceled order is also called an open order. A good til canceled order is frequently used when an investor puts a price restriction on his transaction.

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