There are two time restrictions:
- Day: A limit order that expires at the end of the trading day;
- Good Till Canceled (GTC): A limit order that remains in effect until it is executed by the broker or canceled by the customer (up to 90 days).
It's important to keep in mind that you can't completely eliminate market and investment risks. You can't predict when periods of market volatility will hit, so it is often best to decide what is most important to you based on your investment goals and objectives, whether it be price or making a trade at a specified time. In general, understanding order types can help you prioritize your needs, manage risk, speed execution and provide price improvement. For all of your securities transactions, check the trade confirmation you receive from your firm to make sure the price, fees and order information is accurate. For more information access: https://www.finra.org/investors/alerts/understanding-order-types-can-save-time-and-money.
Keep in mind that all orders are not handled the same way by your financial firm. Ask about your firm’s procedures for handling the execution of securities transactions and different order types, particularly during volatile market conditions. Market orders typically receive the highest priority, followed by limit orders.