Time in Force Orders: Because Holding Forever is Not a Strategy

Welcome back, traders. Today’s article is bringing us back to basics with one of the more overlooked (but absolutely crucial) aspects of order execution: Time in Force (TIF). If you’ve ever put in a trade and later found yourself wondering why it didn’t execute (or worse, why it did when you forgot about it), then congratulations—you’ve met the joys of TIF orders. If you’re a new trader (or investor), then understanding the Time in Force function on the order ticket is important in telling your broker what you want to do.

For those who just YOLO market orders and think this doesn’t apply to them, stick around. Knowing how and when to use Time in Force instructions can save you from unnecessary slippage, avoid those ‘why is my broker calling me?’ moments, and, most importantly, keep your execution tight.

Below are the most common types of TIF orders, when you should use them, and why ‘forever’ is not a recognized execution setting.

1. Day Order (DAY) – Daaaaaaay Tripper

A Day Order is exactly what it sounds like: an order that is valid for the trading day only. If it’s not filled by the close, it gets wiped from the books.

Best used when:

• You’re trading intraday and don’t want orders lingering around once the trading day is done.
• You set limit orders but don’t want to wake up the next morning to find out they filled overnight due to some unexpected news in Asia.
• You have commitment issues.

Example: If you place a limit buy order at $50 with “day” listed as TIF, and it doesn’t hit before market close, it’s automatically canceled. No harm, no foul, no fill.

2. Good ‘Til Canceled (GTC) – The Lazy Trader’s Best Friend

A Good ‘Til Canceled order sticks around indefinitely until it gets executed or you manually cancel it. Now, ‘indefinitely’ doesn’t actually mean forever—most brokers cap them at 30 to 90 days to prevent old orders from haunting you like a bad trade decision.

Best used when:

• You’re swing trading and don’t want to re-enter your order every morning.
• You want to scale into a position over time without micromanaging.
• You’re setting an exit plan and can’t be bothered to keep checking the tape.

Example: You set a sell limit at $75 for a stock you’re holding with a GTC setting for the TIF. Even if it takes weeks to get there, your order will still be active—unless your broker wipes it out due to inactivity.

3. Immediate or Cancel (IOC) – The ‘Now or Never’ Trade

Some brokers do not have this function, so if you’re missing this one, don’t sweat it. With an IOC order, any portion that can be filled immediately is executed, and whatever can’t be filled gets automatically canceled. This is for traders who don’t have the patience to wait for full fills but also don’t want to chase bad entries.

Best used when:

• You’re trading high volatility stocks and partial fills could screw up your execution.
• You don’t want to sit there watching your order get filled 10 shares at a time.
• You’ve got places to be and other trades to execute.

Example: You send a buy limit order for 1,000 shares at $20 with an IOC setting. If only 600 shares are available at that price, those get filled and the rest of the order is canceled.

4. Fill or Kill (FOK) – The All-or-Nothing Order

A Fill or Kill (FOK) order is the ‘all-in’ move of order execution. Either your entire order is filled immediately at your specified price, or the entire thing is nuked. There’s no in-between.

Best used when:

• You’re a trader who demands full control over execution.
• You’re making large block trades and don’t want partial fills messing up your cost basis.
• You’re in a fast-moving market and need a full fill right now or not at all.

Example: You place a FOK buy order for 2,000 shares at $25. If the full 2,000 shares aren’t available at that price immediately, the order is canceled. No partial fills. No waiting. Just results.

5. Good ‘Til Date (GTD) – A Middle Ground Between Day and Forever

A GTD order lets you set a specific expiration date for your order. It’s basically the ‘set it and forget it’ order for traders who like control but also don’t want to manage their order book every single day.

Best used when:

• You want to give your order some breathing room but don’t trust your broker’s GTC time limits.
• You’re traveling and can’t monitor trades every day, but still want orders active for a few weeks.
• You just like setting deadlines—because who doesn’t love a little structure?

Example: You place a sell limit order for a stock you own at $100 with a GTD setting of two weeks from now. If it hasn’t filled by then, it vanishes into the trading void.

6. At the Open / At the Close – For Those Who Like Drama

These orders are self-explanatory:

• At the Open: Executes at the day’s opening price (or as close as possible).
• At the Close: Executes at the closing price (or as close as possible).

These are useful when:

• You need to get in or out on the opening or closing print for some reason.
• You’re following a strategy that relies on opening or closing prices.
• You want to feel like part of the Wall Street crowd, even if you’re just trading from your home office in sweatpants.

Example: You send an at-the-close buy order for a stock at 3:55 PM. It executes right at or near the closing price, assuming there’s enough volume.

Final Thoughts – Relationship Analogies

Choosing the right Time in Force order can be the difference between getting the execution you want and getting stuck in an illiquid mess.

• Day orders - First date and call it a night.
• GTC orders - I asked her out a month ago but didn’t hear back until yesterday. We’re going out tomorrow night!
• IOC and FOK - Want to go out tonight? This is your one and only chance. I’m not free tomorrow.
• GTD - Sure, we can date for a bit, but I’m moving to Bulgaria next month.
• At the Open/Close - I can do breakfast on Friday or dinner on Monday. I don’t eat lunch. Lunch is for suckers.

Next time you place an order, think about your overall execution strategy (of which TIF is a component). Because if you’re still just throwing in market orders without thinking about it, you might as well just wire your money to the market makers directly.

Trade safely and allocate responsibly!