Time-in-force (TIF) is an essential order parameter that instructs a broker and exchange regarding the active lifespan of a trading order. It establishes how long an unfilled order remains on the order book and dictates whether partial fills are accepted or immediately canceled.
How it works
Common instructions include Day (valid only for the current regular trading session), GTC (Good 'Til Canceled across multiple days), IOC (Immediate or Cancel), and FOK (Fill or Kill).
Dictates how unexecuted portions of limit orders are treated when available liquidity is exhausted.
Helps prevent stale resting orders from executing unexpectedly during future sessions.
Why it matters
Selecting the correct time-in-force prevents unexpected executions on forgotten resting orders weeks later.
It allows algorithmic and discretionary traders to control execution urgency and manage liquidity slippage.
A simple market example
A swing trader places a limit order to buy 200 shares at $85.00 with a GTC (Good 'Til Canceled) time-in-force. The order rests in the exchange order book for three days until price dips to $85.00 and fills.
Common mistakes
Submitting a GTC order and forgetting to cancel it when the original trade thesis is invalidated.
Assuming all brokers support advanced TIF types like IOC and FOK on retail mobile apps.
Frequently asked questions
What happens to a Day order at market close?
Its automatic cancellation timing depends on broker and exchange session rules. Any unfilled portion is canceled when the designated session ends and does not automatically carry over.
What is the difference between IOC and FOK?
IOC (Immediate or Cancel) allows partial fills, canceling only the unfilled remainder. FOK (Fill or Kill) requires the entire order to execute immediately or cancels the whole order.
How long does a GTC order last?
GTC orders are not indefinite. Brokers may impose their own expiration limits on GTC orders and may cancel them after specific corporate actions. Check the broker and venue’s current rules.
Educational content only. Definitions describe common market usage and may vary by jurisdiction, instrument, or institution.