Time-in-Force
Definition
Time-in-force specifies how long an order remains active before it is executed or cancelled. It determines whether an order stays open until filled, expires at the end of the trading day, or is cancelled immediately if not filled. Different time-in-force options affect execution certainty and risk, making broker support and default settings an important consideration.
In Plain English
In plain terms, time-in-force answers the question: ‘How long should this order stay active?’ When you place an order, you can tell the broker whether it should remain open until it trades, expire at a certain time, or cancel automatically if it cannot be filled straight away.
How It Works
- You place an order (market, limit, or stop) and select a time-in-force condition.
- The broker applies that instruction to control the order’s lifespan.
- If the order is executed within the allowed time, it is filled normally.
- If the order is not executed, the time-in-force rule determines whether it stays active or is cancelled.
- Common time-in-force types include Good-Til-Cancelled (GTC), Day, Immediate-Or-Cancel (IOC), and Fill-Or-Kill (FOK).
- Orders may expire automatically at market close, session end, or after a defined period.
- Broker platforms may apply default time-in-force settings if none are chosen.
- Behaviour can vary by instrument, market, and broker policy.
Why This Matters for Traders
Time-in-force controls exposure and execution risk. An order that remains active longer can be filled unexpectedly during changing market conditions, while short-duration orders reduce exposure but increase the chance of missing a trade. Understanding time-in-force helps traders avoid unintended fills, manage overnight risk, and align order behaviour with their strategy.
Common Misunderstandings
- Time-in-force only applies to limit orders: it can apply to several order types.
- Orders stay active until manually cancelled: many orders expire automatically.
- All brokers support the same time-in-force options: availability varies.
- GTC orders last forever: brokers often impose maximum durations.
- Time-in-force has no risk impact: it can affect exposure during volatile periods.
How This Affects Broker Choice
Broker support for time-in-force options affects flexibility and risk control. When comparing platforms, users should consider:
• Which time-in-force types are supported for each order type.
• Default settings applied by the platform.
• Whether orders persist across sessions or expire automatically.
• Transparency around order expiry and cancellation rules.
• Consistency of behaviour across web, desktop, and mobile platforms.
From a comparison and monetisation perspective, time-in-force becomes relevant when evaluating platform sophistication and suitability for different trading styles, supporting links to broker reviews and platform comparisons.
Risks & Common Mistakes
• Leaving GTC orders active unintentionally during volatile periods.
• Assuming orders will cancel automatically when markets close.
• Using IOC or FOK orders without understanding partial-fill rules.
• Missing trades due to overly restrictive time-in-force settings.
• Choosing brokers with limited or poorly explained order controls.
Risk note: unintended order execution can occur if time-in-force settings are misunderstood, particularly around market opens, closes, and gaps.
Real-World Example
You place a limit order to buy at £95 with a Good-Til-Cancelled instruction.
• The market does not reach £95 during the day.
• Overnight news causes the price to gap down to £94 at the open.
The order executes immediately at the next available price, even though you may have forgotten the order was still active. This outcome reflects time-in-force behaviour rather than a platform error.
What to Check Before Trading
- Which time-in-force options does the broker support?
- What are the default settings for new orders?
- Do GTC orders have maximum durations?
- How do orders behave across market sessions?
- Are order expiries clearly shown in the platform?
- Is behaviour consistent across devices?
- Are time-in-force rules clearly documented?
Related Concepts
Limit orders commonly rely on time-in-force settings to control execution duration.
Market orders usually execute immediately, making time-in-force less relevant.
Time-in-force interacts with market open and close times.
Execution behaviour depends on how long orders remain active.
Gaps can trigger long-standing orders unexpectedly.
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