How does a good till date order function?

• A. It remains valid until a certain event occurs
• B. It specifies a date until which the order remains active
• C. It is automatically cancelled after one week
• D. It can only be filled on weekends

Answer: (B)

A good till date order, often referred to as a GTC (Good Till Cancelled) order, remains active and can be executed until a specified expiration date. This means that the order will stay in effect and will continue to be available for execution until that date arrives, unless it is either filled or cancelled by the trader before the specified expiration. This type of order allows traders to manage their investments more effectively as they don't have to continually re-enter their orders or monitor them daily.

The other options do not accurately describe how a good till date order functions. While it is true that other types of orders might have conditions that cancel them under certain events or after specific time frames, a good till date order specifically focuses on remaining valid only until the designated expiration date, aligning perfectly with the standard definition and practical application of such orders in trading contexts.