Good Till Time (GTT) - Definition

Good Till Time (GTT) orders are used in trading platforms, including cryptocurrency exchanges. These orders remain active until they are executed, canceled by the trader, or reached a predetermined expiration date and time.

In contrast to Good Till Cancelled (GTC) orders, which stay active indefinitely until manually canceled, GTT orders have a set lifespan. This provides traders greater control over their trading strategies and capital management.

Key Characteristics of GTT Orders

• Time-Bound Execution: GTT orders include a specific expiration date and time. If not executed by then, the order is automatically canceled. This prevents orders from staying open indefinitely and frees up funds for other trading opportunities.
• Flexibility: Traders can set the duration of their GTT orders based on expected market events or personal strategies. For example, they might align expiration times with network upgrades or earnings reports.
• Automation: GTT orders automatically cancel after the specified time. This reduces the need for manual monitoring and intervention, improving trading efficiency and lowering operational tasks.

Use Case Example

Suppose you expect an altcoin to become more volatile due to an upcoming network upgrade in two weeks. You place a buy order at a favorable price using a GTT order, setting it to expire shortly after the upgrade date. If the target price isn't reached within your timeframe, the order is automatically canceled. This allows you to reallocate your funds to other opportunities without needing to intervene manually.

Example Scenario:

• Action: Buy
• Quantity: 100 shares of XYZ
• Order Type: Limit (LMT)
• Limit Price: $47.54
• Expiration: 4:00 PM ET on December 14

If the order is not filled by the expiration time, it is automatically canceled. This ensures your funds are no longer tied up in the unexecuted order.

Benefits of Using GTT Orders

• Enhanced Control: Manage order duration precisely to match trading strategies and market conditions.
• Risk Management: Prevent orders from remaining open indefinitely, reducing exposure to market fluctuations.
• Operational Efficiency: Automate the order lifecycle, minimizing the need for constant monitoring and manual cancellations.
• Strategic Flexibility: Implement time-sensitive trading strategies, such as day trading or swing trading, by controlling the active period of orders.

Best Practices for Managing GTT Orders

• Define Clear Expiration Times: Set realistic and strategic expiration times based on market volatility and trading objectives.
• Regularly Review Orders: Periodically assess active GTT orders to ensure they align with current trading strategies and market conditions.
• Utilize Data Insights: Analyze historical GTT order data to refine trading strategies and improve execution efficiency.
• Stay Updated: Keep informed about updates and enhancements to your trading platform's order management features to take advantage of the latest functionalities related to GTT orders.

Things to Remember

• Time-Bound Nature of GTT Orders: GTT orders automatically expire at a set date and time if not executed. This prevents orders from remaining open indefinitely and helps traders manage their capital more effectively.
• Enhanced Flexibility and Control: Traders can customize the duration of GTT orders to align with specific market events or personal trading strategies. This provides greater precision in executing trades.
• Automation Reduces Manual Effort: The automatic cancellation feature minimizes the need for constant monitoring, increasing operational efficiency and reducing the risk of human error.
• Effective Risk Management Tool: By ensuring orders do not stay active beyond the desired timeframe, GTT orders help mitigate potential risks associated with unexpected market movements and volatility.