What is Time-In-Force (TIF) - Day, GTD, GTC, and EXT? (US options and futures)
Day, GTC, GTD, and EXT orders are designations that dictate the amount of time an order will keep working before it cancels. The TIF, or Time-in-Force, you select for an order will determine how long the order will continue working before expiring if it does not get filled. Below are examples of each TIF and how you use them:
Day: A Day order is a type of time-in-force designation used by traders when placing a trade, indicating that the order will expire at the end of the trading day if it is not filled. This means if the order cannot be executed due to price or liquidity constraints, it will automatically be canceled at the close of the market for that day. Day orders are best suited for traders who prefer to manage their positions actively and limit their exposure to overnight market changes.
GTD (Good 'Til Date): A GTD (Good 'Til Date) order allows traders to specify an exact expiration date for an order, providing more control over how long the order should remain active. Unlike a Day order, a GTD order will stay open until either it is executed or the specified expiration date is reached, whichever comes first. This type of order is particularly useful for traders who have a specific timeframe in mind for their trade without the need to manually cancel unexecuted orders.
GTC (Good 'Til Canceled): GTC (Good 'Til Canceled) orders are instructions to buy or sell a security that remain in effect until the order is either filled or actively canceled by the trader. A GTC order could potentially remain active for several days, weeks, or even months, offering a degree of permanency and ease for traders who do not wish to re-enter orders daily. This time-in-force option is ideal for traders with long-term strategies, allowing them to set their price targets and wait patiently for the market to meet these conditions without the need for daily order management.
EXT (Extended Hours): The EXT (Extended Hours) order time-in-force designation allows traders to participate in pre-market and post-market trading sessions, beyond the standard trading hours. Utilising EXT orders enables traders to act on news or events that happen outside of regular market hours, potentially capturing opportunities that arise from after-hours market movements. This option is particularly appealing to traders looking to capitalise on earnings announcements, economic reports, or other significant events that can influence a stock's price outside the regular trading session.
