Order expiry
Family II · Orders
Not to be confused with order execution, order validity, order type limit.
Order expiry is a time condition attached to a trading order that determines when the order stops being active if it has not been filled. It defines the order's lifespan rather than its price or size, and the available expiry settings vary by broker, order type and market. An order that reaches its expiry without a fill is normally cancelled automatically by the trading system.
Common expiry types
Expiry settings are usually selected when the order is placed and may include:
- Day order — remains active only for the current trading session and expires at the close.
- Good-till-cancelled (GTC) — remains active until filled or manually cancelled, subject to any maximum duration imposed by the broker.
- Good-till-date (GTD) — remains active until a specified date or time.
- Immediate-or-cancel (IOC) — fills immediately to the extent possible and any unfilled portion is cancelled.
- Fill-or-kill (FOK) — must be filled in full immediately or cancelled entirely.
The exact set of expiry options, and whether they apply to market, limit or stop orders, differs between brokers and venues.
Worked example
A trader places a limit order to buy 1,000 shares at 50.00 with a good-till-date expiry of 31 March. The order rests in the book without filling. On 31 March, the venue cancels the remaining quantity.
Interaction with other order conditions
Expiry is independent of price conditions such as limit or stop levels, and of quantity conditions such as all-or-none. An order can carry a limit price and a GTC expiry at the same time. Some brokers also apply a maximum GTC duration, after which the order expires regardless of the selected setting. Expiry rules for stop orders may differ from those for limit orders, particularly in fast markets.
Often confused with
- order execution
- Order execution is the process by which a broker or venue receives a client order and carries it out, determining the price, timing, and manner in which the order is filled or rejected.
- order validity
- Order validity is the attribute of a trading order that determines how long it remains eligible for execution, specifying whether it persists until filled, until a set time, or until the trading session ends.
- order type limit
- A limit order is an instruction to buy or sell a financial instrument only at a specified price or better, so it may remain unfilled if the market never reaches that price.