Time in Force: Trading Order Durations and Types

Time in force (TIF) is an instruction attached to a trade that specifies how long the order remains active before it is executed or expires. It gives traders control over timing and duration, helping prevent unintended executions—especially important in volatile markets.

Key takeaways

• Time in force determines how long an order stays live before execution or cancellation.
• Common TIF instructions include Day, Good‑Til‑Canceled (GTC), Immediate‑Or‑Cancel (IOC), and Fill‑Or‑Kill (FOK).
• Choice of TIF should align with your trading horizon, order type (market, limit, stop), and broker capabilities.
• GTC orders can be useful for longer waits but should include an expiration limit to avoid indefinite exposure.

Why TIF matters

• Prevents old orders from executing at undesirable times or prices.
• Lets traders combine price control (via limit or stop orders) with time control.
• Reduces manual order management—useful for active traders who place many time‑sensitive orders.

Common time‑in‑force instructions

Day Order (DAY)

• Active only for the trading day it’s placed.
• Cancels automatically at market close if not filled.
• Often the default at brokerages.

Good‑Til‑Canceled (GTC)

• Remains active until executed or explicitly canceled.
• Useful for investors waiting for a target price.
• Brokers may impose exceptions (e.g., corporate actions, account inactivity); consider setting a self‑imposed expiration date.

Immediate‑Or‑Cancel (IOC)

• Any portion that can be filled immediately is executed; unfilled portion is canceled.
• Useful when you want partial fills now but avoid leaving residual orders in the book.

Fill‑Or‑Kill (FOK)

• Requires the entire order to be filled immediately or else canceled.
• Common when you need full execution at once and want to avoid partial fills at varying prices.

Market‑On‑Open (MOO) / Limit‑On‑Open (LOO)

• Execute as soon as the market opens at market price (MOO) or at a specified limit (LOO).
• Useful for trading around opening liquidity and price discovery.

Market‑On‑Close (MOC)

• Execute at or near the market close.
• Common for end‑of‑day portfolio adjustments or index fund rebalancing.

Good‑Til‑Date (GTD) / Day‑Til‑Canceled (DTC)

• GTD: remains active until a specified calendar date.
• DTC: deactivated at end of day rather than canceled—facilitates easy re‑transmission.

How TIF interacts with order types

• TIF is independent of whether an order is a market, limit, or stop order.
• Example: a limit order with a GTC TIF waits until price reaches the limit anytime (subject to broker rules); a market order with IOC will execute immediately for available quantity and cancel the remainder.

Practical example

John expects stock ABC (currently $10) to rise within three months. He places a call option buy order with a GTC instruction but sets a three‑month expiration on the order. If ABC never reaches his target within that period, the order cancels automatically—preventing an indefinite open order.

Tips for traders

• Check which TIF options your broker supports and any platform‑specific behaviors.
• Combine TIF with order type intentionally: use GTC for patient limit orders, FOK/IOC for immediate execution preferences.
• For GTC orders, set a personal expiration date to avoid forgotten orders.
• Be cautious in thin or highly volatile markets where partial fills and price slippage are more likely.

Bottom line

Time in force is a simple but essential control that lets traders manage how long orders remain active. Choosing the appropriate TIF—paired with the right order type—helps align execution with trading goals and reduces the risk of unintended trades. Review your broker’s rules and use expiration controls when holding orders over longer periods.