Orders & execution
How does a Good-Til-Canceled (GTC) order handle corporate actions and quarterly expirations?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
A Good-Til-Canceled (GTC) order remains active until executed or manually canceled, but brokers typically have policies that cancel or adjust GTC orders around stock splits, mergers, or dividend record dates.
How it works
Because corporate actions change share counts and prices, many brokers automatically cancel GTC orders before ex-dividend dates or adjust limit prices to reflect splits, requiring investors to review standing orders periodically.
An example
An investor's GTC limit order is automatically canceled by their broker ahead of a 2-for-1 stock split to prevent an outdated price from executing incorrectly.
Risk & limitations
Relying on GTC orders for long periods without reviewing them can lead to unexpected cancellations or fills at unintended prices after corporate events.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.