Hello everyone, I am new to this I only own 20 shares in a company at the moment, I use Qtrade, when I buy or sell the only option they have is a GTD option, I just want to know what happens to my shares and money once the GTD has expired? Does the money go back into my account? Do I still own those shares or do I have to re-buy them? Thank you in advance. Happy trading!
GTD only comes into play if you place an order to buy or sell. If you do not have an open order to sell your shares, then you do not need to worry about the GTD. If you currently have an open limit order to sell your shares and your price is not met by the GTD, then once that GTD date is reached the order expires, you keep the shares, and you can place a new GTD order to sell.
Ok, I had a GTD order to buy and it stated it was filled, the qtrade app I use always has a GTD order, you can only choose the duration. Thank you for the reply!
There ya go. As you've seen, once your order fills the GTD obligation is met and is no longer in effect.
"Good til cancelled" or "good til date" orders are a type of limit order. It sounds like your platform does not offer market orders, which is an order to buy or sell whatever the market maker gives you. The GTD and GTC orders are a form of limit order that require you to state the price you want to buy or sell. The point of them is to not get fleeced by market makers taking advantage of a chaotic market (like we've seen recently) and sticking you with an out-of-whack price. You don't earn money from an order type like "market" or "GTD". They are simply a tool for managing price entry or exit from a stock purchase or sale. The cash you have set aside for the GTD order may earn interest if your brokerage offers a money market sweep or other instrument for cash in your account. Just make sure you don't spend any cash (on other orders) that you need to fill your GTD order.
