SIE practice questioneasyOrder Types
A client enters a GTC (good-till-canceled) order. What does this mean?
- AThe order expires at the end of the trading day.
- BThe order remains active until it is executed or canceled by the client.✓ Correct answer
- CThe order must be executed immediately.
- DThe order can only be placed during the opening auction.
Explanation
Why B — The order remains active until it is executed or canceled by the client.
GTC orders stay open until filled or canceled, unless a firm or exchange imposes a time limit. Day orders expire at the close. Immediate-or-cancel orders must execute right away, and opening auction restrictions don't apply to GTC orders.
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