Why should I only place Day orders?

Name: Novel Financial
Address: 611-55 Lombard St., Toronto, ON, M5C 2R7

Question

admin · Accepted Answer

Your hope is to place orders that are fulfilled very quickly. A lot can change from day-to-day in the market, and leaving trades open longer than a day is not recommended. Other duration options are:

GTD – Good-Till-Date
- Expiry date specified by the user, but cannot be open longer than 90 days
GTC – Good-Till-Cancelled
- Expires only if cancelled by the user, or 90 days, whichever is sooner.
GTEM – Good-Till-Extended Market
- This means that the trade will be active in extended trading (until 5:30 pm for Canada exchanges), which is not recommended due to added risk.
FOK – Fill or Kill
- This is a trade that is executed immediately and completely or not at all. This trade type is useful for active traders who trade large volumes of securities.
IOC – Immediate or Cancel
- Similar to FOK, the trade must be executed immediately, but the IOC trade will allow for a partial # of the securities of the order to be fulfilled. FOK is all or nothing.