What does a Good Till Date order signify?

• A. It is valid until the end of the trading week
• B. It is only valid on the day it is placed
• C. It remains valid until filled, canceled, or reached a specified expiry date
• D. It can only be filled during market hours

Answer: (C)

A Good Till Date (GTD) order signifies that the order remains valid until it is either filled, canceled by the investor, or reaches a specified expiry date set by the investor. This type of order provides flexibility, allowing the investor to specify how long they are willing to wait for the order to be executed beyond the current trading day.

This is particularly useful for investors who want to set limit orders without having to continuously re-enter them on a daily basis. The advantages of a GTD order lie in its ability to accommodate the time-sensitive nature of trading while still giving the investor control over the order's duration. This is in contrast to other order types that may expire within a single trading day's timeframe or have different performance limitations.