Understanding time in force is essential for traders who want greater control over how and when their orders execute. This critical trading instruction determines how long an order remains active in the market before it’s filled or expires. Whether you're a day trader capitalizing on short-term volatility or a long-term investor waiting for the perfect entry point, selecting the right time in force option can significantly impact your trading success.
What Is Time in Force?
Time in force refers to the duration for which a trade order remains valid before it is either executed or canceled. It gives traders precise control over the lifespan of their orders, reducing the risk of unintended executions—especially during fast-moving or volatile market conditions.
These instructions are particularly valuable when using limit orders, where price precision matters. Without a defined time parameter, an order might linger indefinitely, potentially executing at an undesirable time or price. By setting a clear expiration, traders maintain discipline and avoid emotional decision-making.
Most brokerage platforms allow users to select from several time in force options, typically represented by acronyms such as:
- DAY – Day order
- GTC – Good-Til-Canceled
- IOC – Immediate-or-Cancel
- FOK – Fill-or-Kill
- GTD – Good-Til-Date
While basic accounts may only offer limited choices, advanced trading platforms provide full access to these settings, empowering active traders to fine-tune their strategies.
👉 Discover how advanced order types can improve your trading precision and execution speed.
Common Types of Time in Force Orders
Day Order (DAY)
The most commonly used time in force setting is the day order, which remains active only during the current trading session. If the order isn't executed by market close—typically 4:00 PM ET in U.S. markets—it automatically expires.
This option suits traders who prefer a clean slate each day and don’t want stale orders lingering. It’s ideal for those reacting to daily news, earnings reports, or technical breakouts that lose relevance after hours.
Good-Til-Canceled (GTC)
A Good-Til-Canceled (GTC) order stays active until it is either filled or manually canceled by the trader. Most brokers set a maximum duration—often 60 to 90 days—after which the order expires even if not canceled.
This type benefits long-term investors aiming to buy or sell at a specific price without constant monitoring. For example, if you want to purchase shares of a stock only if it drops below $50, a GTC order ensures you don’t miss the opportunity while avoiding repeated manual input.
However, it's crucial to review open GTC orders regularly. Market conditions change, and what was once a strategic price target may no longer align with current fundamentals.
Immediate-or-Cancel (IOC)
An Immediate-or-Cancel (IOC) order requires that any available portion of the order be executed instantly. Any unfilled part is immediately canceled—not left on the books.
This type is useful when partial fills are acceptable, but lingering orders are not. For instance, a trader might use IOC to quickly acquire as many shares as possible at a favorable price without exposing themselves to future price shifts.
IOC orders are common in high-frequency and algorithmic trading environments where speed and efficiency are paramount.
Fill-or-Kill (FOK)
A Fill-or-Kill (FOK) order demands that the entire trade be executed immediately—or not at all. Unlike IOC, partial fills are not allowed.
This setting is ideal for traders who need full position entry at a consistent price. For example, institutional investors or swing traders may use FOK to avoid slippage across multiple executions, ensuring uniform cost basis and cleaner trade records.
Due to its strict nature, FOK orders have a higher chance of non-execution, especially for large quantities or low-liquidity stocks.
Market-on-Open (MOO) and Limit-on-Open (LOO)
These specialized orders target the market’s opening auction:
- Market-on-Open (MOO) executes at the opening price, whatever it may be.
- Limit-on-Open (LOO) only executes if the opening price meets or improves upon the specified limit.
They’re useful for traders anticipating significant price gaps based on overnight news or earnings releases. However, because they rely on opening auction dynamics, they carry uncertainty—especially around volatility or low volume at the open.
Good-Til-Date (GTD)
A Good-Til-Date (GTD) order allows traders to set a custom expiration date and time. This provides flexibility beyond standard GTC limits.
For example, if you expect a stock to reach a target price in two weeks due to an upcoming product launch, you can set a GTD order to expire exactly then. After that point, the order self-cancels, protecting against outdated strategies.
👉 Learn how setting time-specific orders can align your trades with key market events and catalysts.
Real-World Example: Using GTC Strategically
Consider John, an investor analyzing stock ABC currently trading at $10. He believes the company has strong long-term potential but thinks fair value is closer to $15. Rather than buying now, he waits for confirmation of upward momentum.
John places a limit order to buy ABC shares at $12.50 with a Good-Til-Canceled (GTC) time in force instruction—but adds a personal rule: if the stock hasn’t hit his target within three months, he’ll reassess his thesis.
Three months pass, and despite some positive news, ABC stalls below $12. The order never executes. John reviews his analysis, notes weakening sector trends, and decides not to extend the order. His disciplined use of time in force prevented a potentially poor investment based on outdated assumptions.
This illustrates how combining limit orders with smart time parameters enhances both risk management and strategic clarity.
Frequently Asked Questions (FAQ)
Q: What happens to a day order after market close?
A: A day order automatically expires at the end of the trading session if not executed. It does not carry over to the next day.
Q: Can I change the time in force after placing an order?
A: No—you cannot modify the time in force of an open order. You must cancel the original order and place a new one with updated parameters.
Q: Are GTC orders truly "good until canceled"?
A: Not indefinitely. Brokers typically impose a maximum lifespan (e.g., 60–90 days), after which GTC orders expire even if not canceled manually.
Q: When should I use IOC instead of FOK?
A: Use IOC when partial fills are acceptable and speed matters; choose FOK when you need full execution at one price or none at all.
Q: Do all brokers support every time in force type?
A: No. Basic retail platforms may only offer DAY and GTC. Advanced or professional platforms usually include IOC, FOK, MOO, LOO, and GTD options.
Q: Can time in force help reduce emotional trading?
A: Yes. By predefining how long an order lasts, traders remove impulsive decisions and stick to their strategy—even during volatile markets.
Final Thoughts
Mastering time in force settings empowers traders to act with precision, discipline, and intention. Whether you're scalping minutes off intraday moves or building positions over months, these tools help align your trades with your strategy—not market noise.
Key benefits include:
- Preventing unwanted executions
- Automating trade management
- Enhancing control over entry and exit points
- Supporting both aggressive and conservative approaches
As markets evolve and trading technology advances, understanding nuanced order types becomes increasingly important. Traders who leverage these features gain a measurable edge—one order at a time.