Sunday, November 03, 2019

Duration (term) of Order

         This post is a continuation of the $50 a month stock challenge I started October 14, 2019.  Click on, "No Commission Stock Trades", on the right side of the page to read from the start. 

      I have already discussed why you should always place a "limit order" . When placing an order you will be asked for "duration or term of order". Some will automatically place a "day order" unless prompted for another order.

     This "screen shot" shows an order page on E-trade but the terminology will be the same (maybe not word for word but recognizable). Top "E-trade", bottom "Think or Swim".


                                                                                                                                                                     
     On the drop-down menu=
Good for the day = good during normal market hours (8:30am-4:30pm (Eastern time)for one day

Good for 60 days = also known as GTC (good till canceled), the duration may differ from one brokerage to another. GTC may mean good for 90 days

Immediate or Fill or Kill orders are only for "market order"

Extended (EXT) hours day = most stocks can be traded (very thin market) 7:00am-8pm (ET), as opposed to normal 8:30-4:40 (ET) hours. My "Think or Swim" also offers GTC- EXT. 
     GTC-EXT is a great order to "SELL" because we don't care WHEN our orders are filled and some "wild trades" can happen in "Extended hours" trading.

BOTTON LINE, use "limit-day" orders to "buy" (save the EXT hour trading until you are more experienced). I will not use EXT-DAY orders to "buy" in the $50 a month challenge because I do not think it is prudent for beginner traders. 
     I will just use for teaching,
    "Limit" Good for the day = buy orders
    "Limit" GTC-EXT = sell orders 

Remember orders can be placed "anytime" and  will be activated when the market opens. Place an order at night or before the market opens and it will be placed for you upon market opening.
     Orders can be canceled or modified at any time before they are filled.
     
Disclaimer, I am not a professional.


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