Intro to Stock Trading

Day and GTC Orders and Extended Hours Trading

When you are ready to trade stock, you can place either a day order, which will expire at the end of the trading day if it isn't filled, or a good-till-canceled order, which won't expire for up to sixty days, depending upon the broker.

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1. They are completely filled
2. You cancel the order
3. Sixty calendar days pass

• You may forget you placed the order; a lot can change in 60 days!
• If you place a large trade with Good-till-Canceled status, you will pay a commission each day your order is partially filled. If, on the other hand, your order is filled by multiple transactions in a single day, your broker should only charge you a single commission.

Extended Hours Orders

There are a number of risks associated with extended hours orders; primarily an increase in volatility as a result of decreased liquidity. Any time there are fewer shares trading hands, stock price movements larger because buy and sell orders have a disproportional influence upon the quoted value. As a result, the price you pay for an extended hours trade can differ substantially from what you would pay (or receive) during regular market hours.

• The 12 Types of Trades You Can Place with a Broker
• Market Orders
• Limit Orders
• All-or-None Orders
• Stop Order and Stop Limit Orders
• Selling Short and Buy to Cover Orders (Continued)
• Day and GTC Orders and Extended Hours Trading
• Trailing Stop Orders
• Bracketed Orders
• Summary of Stock Trades