This week’s question is about GTC orders or just putting in an order being a little bit more of a day trader.
Here’s the question:
“Hi Sasha, my question is if I have already placed an order and it has been executed, and now I’m trying to sell it. But I think I’m at present as of this morning considered a day trader because of the amount of trades I made. Well, my order there is up for sale go through, or will it just sit there until a certain number of days has passed?
There’s a couple of things here missing, maybe in the question. Depending on if you’re flagged as a day trader, there’s nothing wrong with that as long as that the amount of funds that you have in your account is over 25,000. And in that case, you could trade as much as you want. As long as that fund amount stays above that 25,000 level, then it doesn’t matter.
But yes, your account will be flagged as a pattern day trader in the trading panel and platform. Once you’ve done a certain amount of trades typically the order when you put the order in, it’s going to hang around there for the day.
Harley Davidson Stock – HOG
If I buy this order and I go Harley-Davidson, I want to buy some shares. Let’s say I’m looking to buy one share. Remember, it typically puts the order in as good for the day. Once the day is ended, that order is going to close out.
Even if your order is not allowed to go through (depending on the brokerage platform), then what’s going to happen is that order is going to cancel out anyway for the day.
Then after that, you have to put a new order whenever you’re capable, and they can execute your order. For some trading platforms, they just won’t even let you put the order in. Other platforms will let you put the order in. It’ll just linger and hang out. That depends on the broker to broker from my understanding.
If your panel allows you to put the order into combat this issue, you could put it in Good ’till Canceled. That means it would just stay in there the second day, the third day, the fourth day.
GTC Orders – Explained
Let’s say if I’m looking to buy this stock. It doesn’t matter if you’re buying or selling. I put a GTC order – that means “Good ’till Canceled.” Click confirm and send it. Send that in.
Now, this order is sitting and working, and it’s just doing its thing. Hasn’t hit the price yet. That could be the same way where your order is not allowed to go through up until your day trading obligations have run their course. And now you are allowed to.
If this were good for the day, at the end of the day, this order would cancel out. And it’d be done and then you’d have to put a new order in the next day.
That’s the way you do the orders. But if you’re interested in just keeping the order in there, then you could do a GTC order. That way, the order sits and marinates there. And whatever you’re either capable, or it hits your price or whatever the factors line up, then the order would get executed.
Every trading platform is a little different. Every broker is a little different. I don’t know your requirements. I don’t know if you’re just flagged as a pattern day trader or you have over 25,000 or you’ve hit your limit, and you’re not allowed to do more trades. Everybody’s situation is different.
Pro Tip: The best approach is to pick up the phone and call your broker. Have them take a look at your account. Then you can ask them some specific questions.
That way, they’re looking at your account, and you can ask them a question. They can tell you how it would work and the process of either getting that trade executed or letting it run its course for the next second third or fourth day, depending on how long you have to wait.
I hope this post will give you some insight into GTC orders and help you get a better understanding.
If you want to ask the question, feel free to submit one by voice here!