Definition: An order to buy or sell a stock at a fixed price. This order is active until 1) the trade is executed, 2) the investor decides to cancel it or 3) a specified time period elapses.
Explanation: Typically, GTC orders are canceled by brokerage firms after a specified time period like 30-90 days. Investors use this type of order typically to buy a stock at a lower price or sell a stock at a higher price. For example if an investor owned a stock that is currently $40 and the investor wants to sell it if it reaches $50, you can use a GTC order. Once the GTC order to sell is placed, if the price of the stock reaches $50 at any point over the next few months your shares will be sold.