A good thru date, or GTD, is an order that works until executed or cancelled, or until the end of the trading session on the date specified by the trader. A good thru date is most commonly associated with a stop order or limit order and it specifies that the order will be valid until the expiration date unless the order is amended, executed, or cancelled beforehand. A good thru date is helpful to traders who are especially active as it creates a definitive timeline for them and keeps them from prematurely executing trades. The good thru date may also be referred to as the “good through date”, “good till date”, “valid thru date”, or “sell thru date”.
When to Use Good Through Orders
There are several instances when using a good through order can be advantageous to traders. The first is when there is pending news coming down the pipeline for the security or commodity you are investing in. This could be an earnings report, crop report, etc. The trader would want to set an expiry date on the order exactly 1-day before the pending news is set to hit the market.
Another example of a good time to use a good through order is when a trader wants to execute a breakout trade. A trader may suspect the price of a security if going to break out of the trader’s predetermined breakout range. If a trader wants to buy that breakout they can execute a good through order to buy the security and cancel the order if the security fails to breakout.
A good through cancel order is another type of trade a trader can execute to enter or exit a position. These orders will work in all sessions and can be either a stop or a limit order. The order can be for entries or exits. The reason for placing an order GTC is to make sure you don’t miss an opportunity to enter a position as well as to protect a position you have on during all market sessions.
What Are the Risks for GTD Orders?
One of the few risks to a GTD order is that on occasion, you may not be able to get into or out of the security you wanted in time because your targeted price was never offered. In general, a GTD order is placed as a way to combat risk, essentially you execute a GTD order to play it safe. Of course, with that mindset you may not be able to make as much money on a trade as you would without a GTD, but you also won’t lose as much.
Are GTD Orders Available in All Trading Markets
Unfortunately, GTD orders are not available everywhere, in fact they are only a select number of places you can trade using a GTD order. You may place a GTD order on iOCBC for SGX market and cash accounts only. However, similar to a GTD order, you can place a good through cancel (GTC) order in a variety of markets including futures markets. To learn more about GTD or GTC orders please contact one of our experienced brokers and they can assist you to the best of their ability.